Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 8, Problem 3RQ
To determine
Evidence of the business cycle in the U.S.A. becoming less severe with the passage of time.
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Students have asked these similar questions
Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend despite the cycles?
Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year. Which data do you look at? How does the economy behave at the onset of a recession? Explain how unemployment changes over the business cycle. Why do these changes occur?
Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend in spite of the cycles
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- Economists refer to fluctuations in output as the "business cycle" because movements in output are regular and predictable True/Falsearrow_forwardAccording to the classical perspective (the one from the 19th century that I described at the beginning of my first lecture video), what kinds of things could cause recessions or other economic downturns?arrow_forwardWhen real GDP declines during a recession, what typically happens to consumption, investment, and the unemployment rate? During an economic boom, what happens to these variables?arrow_forward
- Business cycles are pervasive in all macroeconomic variables. Does the relative durations of expansions and recessions help explain the fact that long-term economic growth has been positive?arrow_forwardAn individual worker is laid off because his firm is in financial trouble. Why would this event be of more interest to a microeconomist than to a macroeconomist?arrow_forwardwhen hoarding occurs, what problem does it create for an economy? You can use the recent run on grocery stores for food, toilet paper, and cleaning products as an example. Do you feel the government should step in to prevent these types of situations? Why or why not? What types of policies do you think could prevent or help with this type of event? in terms of macro economics.arrow_forward
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