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10 Cards in this Set
- Front
- Back
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Business Cycles
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Fluctuations in the overall rate of national economic activity with alternating periods of expansion and contraction; these vary in duration and degrees of severity; usually measured by real gross domestic product (GDP).
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Listed in order, the phases of a complete business cycle are
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contraction, trough, expansion, peak.
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The business cycle chronology for Canada shows that
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compared to the 1854-1929 period, the post-1945 period was characterized by fewer months in contraction and more months in expansion.
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The 1974-1975 recession showed that
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business cycle recessions can occur with escalating inflation.
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After reaching a trough in 1982, the Canadian economy expanded until
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the recession of 1990.
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Which of the following is not a component of the Index of Leading Economic Indicators?
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supermarket sales
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One negative aspect of a business cycle boom is
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an increasing rate of inflation.
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Do large seasonal fluctuations show up in the GDP data?
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No, because regular seasonal fluctuations are removed from the data.
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Which of the following macroeconomic variables is procyclical?
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the nominal money stock
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In the AD-AS model, the AD curve
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slopes downward.
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