ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Scenario: It is the year 2035, and many people in the United States are very happy with the state of the economy. Real GDP has risen steadily over the past year,
Which of the following statements is true regarding this scenario?
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The US is in the expansion phase of the business cycle because Real GDP is rising, unemployment is low, and inflation is rising.The US is in the expansion phase of the business cycle because Real GDP is rising, unemployment is low, and inflation is rising.
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The US is in the contraction phase of the business cycle because people are buying durable and consumer goods and stock market prices are rising.The US is in the contraction phase of the business cycle because people are buying durable and consumer goods and stock market prices are rising.
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The US is in the stagflation phase of the business cycle because inflation is rising but considers are still confident in the economy.
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