Exam 8: Business Cycles

Industries that are extremely sensitive to the business cycle are the

The low point in the business cycle is referred to as the

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,which of the following curves is vertical?

The ADS Business Conditions Index is a

In the long run,an increase in consumer spending would cause output to ________ and the price level to ________.

Which of the following macroeconomic variables does not vary much over the seasons?

Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because

Which group within the National Bureau of Economic Research officially determines whether the economy is in a recession or expansion?

Stock and Watson found that monetary policy was responsible for about ________% of the reduction in output volatility that occurred in the mid-1980s.

The long boom ended in

The probability that an employed worker will lose his or her job in the next month is known as

The recession of 2001 began in ________ and ended in ________.

An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called

Which of the following macroeconomic variables would you include in an index of leading economic indicators?

Use the NBER data in Table 8.1 in the textbook on U.S.business cycle turning points to calculate: a)the shortest business cycle from peak to peak; b)the shortest business cycle from trough to trough; c)the longest business cycle from peak to peak; and d)the longest business cycle from trough to trough.

The NBER's Business Cycle Dating Committee picks recession dates by looking at many variables,the four most important of which are industrial production,manufacturing and trade sales,nonfarm employment,and real personal income.These variables are known as