Question 1

A relatively mild period of falling incomes and rising unemployment is called a(n)&#10;A)depression.&#10;B)recession.&#10;C)expansion.&#10;D)business cycle.

Accepted Answer

A relatively mild period of falling incomes and rising unemployment is called a recession. A depression is a more severe and prolonged period of economic downturn. Expansion refers to a period of economic growth and increasing employment. Business cycle refers to the natural fluctuations of economic activity over time, including periods of expansion and recession.

Question 2

During a recession the economy experiences&#10;A)rising employment and income.&#10;B)rising employment and falling income.&#10;C)rising income and falling employment.&#10;D)falling employment and income.

Accepted Answer

During a recession, the economy experiences falling employment and income. This is due to decreased demand for goods and services, which leads to businesses reducing their output and workforce in order to cut costs. As a result, individuals experience job losses, lower wages, and reduced spending power, further exacerbating the economic downturn.

Question 3

On average,over the last 50 years,real GDP has grown by about &#8203;&#10;A)&#8203;3 percent per year.&#10;B)&#8203;2 percent per year.&#10;C)&#8203;1 percent per year.&#10;D)&#8203;4 percent per year.

Accepted Answer

D

Question 4

During recessions&#10;A)workers are laid off.&#10;B)factories are idle.&#10;C)firms may find they are unable to sell all they produce.&#10;D)All of the above are correct.

Accepted Answer

The answer of During recessions&#10;A)workers are laid off.&#10;B)factories are idle.&#10;C)firms...

Question 5

In October 2009,the official unemployment rate rose to &#8203;&#10;A)&#8203;10%.&#10;B)&#8203;8%.&#10;C)&#8203;6%&#10;D)&#8203;4%.

Accepted Answer

This is the correct answer. In October 2009, the official unemployment rate in the US rose to 10%. This was a significant increase from the previous month and marked the highest unemployment rate in over 25 years.

Question 6

Which of the following explains why production rises in most years?&#10;A)increases in the labor force&#10;B)increases in the capital stock&#10;C)advances in technological knowledge&#10;D)All of the above are correct.

Accepted Answer

Production typically rises in most years due to a combination of factors including increases in the labor force, increases in the capital stock, and advances in technological knowledge. These factors often work together to increase productivity and output.

Deck 33: 0:sec 330 Mc Aggregate Demand and Aggregate Supply