The Business Cycle

Which kind of unemployment is most likely to be experienced in a recession?

In order to be called a recession, the economy must contract for at least how long?

Over a long time horizon, a nation's economy will increase.

Which of the following is NOT characteristic of an economic slowdown?

Unemployment rates tend to fall during economic contractions

In an economic expansion, the economy will most likely experience

Consumer spending will typically decrease when the economy expands

Which is NOT a characteristic of an economic expansion?

All of the following are associated with economic slowdowns EXCEPT

Which of the following must be true about Point E on the graph?

There will be some inflation during economic expansions

Which of the following will cause aggregate supply to rise?

A fall in aggregate demand is usually associated with a(n)

Which is NOT one of the phases of the business cycle?

GDP will decrease in all of the following situations EXCEPT