The phase of the business cycle in which real GDP declines is called: a recovery. the trough. a recession. the peak.

Which one of the following is not a cause of recovery? O decrease in prices Increase in spending O increase in output Increase in employment O Increase in income

The housing market has weakened during every recession except which of the following?   a. The Recession of 1974   b. The Recession of 1991   c. The Recession of 2001   d. The Recession of 2008

List and explain ONE of the shortcomings in using the official GDP as a measure of total production in the economy. List and explain ONE of the three reasons why the aggregate demand curve slopes downward.

The trough of the business cycle: O is a temporary maximum level of real GDP. comes before the recession phase. comes right after the expansion phase. is a temporary minimum level of real GDP.

If the nominal wage rises by 6 percent and the price level rises by 7 percent, the real wage will fall by 3 percent. fall by 1 percent. rise by 11 percent. rise by 1 percent.

A price index is Multiple Choice the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period. a ratio of real GDP to nominal GDP. a comparison of real GDP in one period relative to another. a comparison of the current price of a market basket to a fixed point of reference.