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Recurring upswings and downswings in an economy's real GDP over time are called?

business cycles.

During a severe recession, we would expect output to fall the most in?

the construction industry.

The production of durable goods varies more than the production of nondurable goods because?

durables purchases are postponable.

A recession is defined as a period in which?

real domestic output falls.

An unexpected increase in total spending will cause an increase in GDP?

if prices are sticky.

Which of the following would most likely move the economy into a recession in the short term?

The central bank printing less money than was anticipated.

Refer to the above information. The labor force in Scoob is?

102 million.

Refer to the above information. The unemployment rate in Scoob is?

6.9%.

Refer to the above information. If the natural rate of unemployment in Scoob is 5 percent, then?

cyclical unemployment is about 2 percent.

Cyclical unemployment results from?

a deficiency of spending on goods and services.

Which of the following constitute the types of unemployment occurring at the natural rate of unemployment?

Structural and frictional unemployment.

Which of the following types of unemployment is directly associated with insufficient overall demand for goods and services?

Cyclical unemployment.

The GDP gap measures the difference between?

actual GDP and potential GDP.

If actual GDP is $500 billion and there is a negative GDP gap of $10 billion, potential GDP is?

$510 billion.

Assume the natural rate of unemployment in the U.S. economy is 5 percent and the actual rate of unemployment is 9 percent. According to Okun's law, the negative GDP gap as a percent of potential GDP is?

8%.

Refer to the above data. The size of the negative GDP gap as a percent of potential GDP for the above economy is?

12%.

Refer to the above data. The amount of output being forgone by the above economy is?

$24 billion.

If the Consumer Price Index rises from 300 to 333 in a particular year, the rate of inflation in that year is?

11%.

Rising per-unit production costs are most directly associated with?

cost-push inflation.

Which of the following would most likely occur during the expansionary phase of the business cycle?

Demand-pull inflation.

Suppose that a person's nominal income rises from $10,000 to $12,000 and the consumer price index rises from 100 to 105. The person's real income will?

rise by about 15 percent.

Who is least likely to be hurt by unanticipated inflation?

an owner of a small business.

Inflation affects?

both the level and the distribution of income.

Suppose that lenders want to receive a real rate of interest of 5 percent, and that they expect inflation to remain steady at 2 percent in the coming years. Based on this, lenders should charge a nominal interest rate of?

7%.

Changes in stock market prices?

do not greatly impact the macroeconomy and used alone are not reliable predictors of the future health of the economy.

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