Ch 12

During a recession, consumer spending

A drop in the average price of goods is described as...

the business cycle is measured from...

The business cycle is caused by...

during the contraction period of a business cycle, unemployment rates should

when there is a sharp decline in real GDP, usually for a long period of time, it called a

people on fixed incomes are not affected by inflation because they receive fixed payments

An increase in the average level of prices is called

aggregate demand curves and aggregate supply curves are useful to show

An economy can produce more if

M x V = P x Q is called

The Rule of 70 is used to

If aggregate supply decreases and aggregate demand stays the same...

inflation can originate on both the supply or demand side.

The economy is a trough when real GDP is at a

solve using the exchange equation, if M=10 V=20 and Q=200, the P=?

when there is a mild decline in real GDP for a relatively short period, its called a

In a recession real GDP falls and...

The number of times of a dollar is spent on goods and services in a year

When businesses decrease production and investment, then