The Business Cycle

Question 1

best

Revolt · Accepted Answer

Consumers spend less, causing worker layoffs.

Question 2

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Revolt · Accepted Answer

Car dealerships cannot sell their stock.

Question 3

Which indicators do economists use to determine the state of the economy? Choose three answers.pricesimmigration levelsagricultural outputemployment levelsgross domestic product (GDP)

Revolt · Accepted Answer

prices; employment levels; gross domestic product (GDP)

Question 4

Read a passage from a speech given by President Barack Obama.Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit . . . And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits.–President Barack Obama, February 4, 2009

Revolt · Accepted Answer

It describes government measures to stimulate demand and bring about a recovery.

Question 5

Income reaches the highest level at the point of the business cycle.

Question 6

Which of the following conditions is most indicative of recovery?

Revolt · Accepted Answer

The economy is growing again.

Question 7

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Revolt · Accepted Answer

macroeconomic trends

Question 8

During a recession, what is one way governments try to encourage growth?

Revolt · Accepted Answer

by increasing unemployment benefits

Question 9

This is a graph of the business cycle.Time is measured along the x-axis. What is measured along the y-axis?

Revolt · Accepted Answer

economic output

Question 10

Which of the following is a characteristic of prosperity in the peak phase of the business cycle?

Revolt · Accepted Answer

high levels of production

The Business Cycle Answers

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