Business Cycle correct answers Fluctuations in short term economic growth, however, the long term growth trend is positive
Expansionary Stage correct answers when growth in GDP is increasing at an increase rate. characterized by periods of positive economic growth. unemployment, sometimes rising...
Econ 2(All answered)
Business Cycle correct answers Fluctuations in short term economic growth, however, the long term
growth trend is positive
Expansionary Stage correct answers when growth in GDP is increasing at an increase rate. characterized
by periods of positive economic growth. unemployment, sometimes rising inflationary pressures.
Peak correct answers when growth in the GDP stalls
Contractionary Phase correct answers Follows peak, growth in GDP is either negative or increasing at a
decreasing rate. unemployment levels tend to increase and inflationary pressures state to ease. Also
known as a recession
Recession correct answers Significant decline in economic activity spread across the economy lasting
more than a few months, normally visible in real GDP real income. employment, industrial production,
and wholesale retail sales. Contractionary phase is also known as.
Aggregate demand curve (AD) correct answers Downward, sloping. Graphical representation of the
relationship between the price level and the quantity of real GDP demanded by households, firms, and the
government. Illustrates the relationship between prices and output.
down correct answers As prices go up, demand curve goes
up correct answers as prices go down, demand curve goes
Wealth Effect correct answers Consumers are wealthier (purchasing power increases), which stimulates
the demand for consumption goods
Purchasing Power correct answers When price level falls, you feel wealthier because you can now buy
more for your 5$. This increases your...
Interest Rate Effect correct answers Interest Rates fall, which stimulates the demand for investment
goods.
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