ECONOMICS
BUSINESS CYCLES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
economic growth
|
|
|
The steady and always increasing amount of real GDP in an economy
|
|
|
Changes in the GDP deflator
|
|
|
Changes in real GDP and the unemployment rate over time
|
|
|
Changes in the inflation rate over time
|
Detailed explanation-1: -Which of the following is the correct definition of a business cycle? The business cycle is the natural ups and downs of total production in an economy. The lowest part of the cycle is called the trough and the highest part is called the peak.
Detailed explanation-2: -As the economy moves through the business cycle, a number of additional economic indicators tend to shift alongside GDP. During an economic expansion, economy-wide employment, incomes, industrial production, and sales all tend to increase alongside the rising real GDP.
Detailed explanation-3: -During an expansion phase of the business cycle, real GDP is increasing. 1. The expansion phase is sometimes called recovery.
Detailed explanation-4: -Expansion The first stage in the business cycle is expansion. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.