Question : 31) A(n) ________ comes to an end with a business : 1244760

31) A(n) ________ comes to an end with a business cycle ________.

A) recession; peak

B) recession; trough

C) expansion; trough

D) expansion; bubble

32) The Business Cycle Dating Committee defines a recession as

A) two consecutive quarters of declining real GDP.

B) two consecutive quarters of declining nominal GDP.

C) a significant decline in activity visible in industrial production, employment, real income, and wholesale/retail trade lasting more than a few months.

D) a significant decline in inflation and unemployment lasting more than a few months.

33) Following the September 11, 2001, terrorist attacks, the managers of many hotels expected a prolonged period of reduced travel, responding by laying off workers and postponing or canceling new construction. Isadore Sharp, the chairman and CEO of Four Seasons Hotels, decided to

A) continue expanding and was able to maintain or enhance the company’s market share.

B) continue expanding and the company ended up losing significant market share.

C) curtail expansion plans, and by significantly cutting back on expansion was able to maintain the company’s market share.

D) curtail expansion plans and the company ended up losing significant market share.

34) As the economy nears the end of an expansion, interest rates usually ________ and wages raise more ________ than prices.

A) rise; rapidly

B) rise; slowly

C) fall; rapidly

D) fall; slowly

35) A recession begins with a(n) ________ in spending by firms on capital goods and a(n) ________ in spending on durable goods by households.

A) increase; decrease

B) increase; increase

C) decrease; increase

D) decrease; decrease

36) Which of the following goods would see the largest decline in demand during a recession?

A) automobiles

B) food

C) clothing

D) haircuts

37) When a recession ends

A) interest rates decrease.

B) households decrease spending on durable goods.

C) the household sector decreases spending substantially.

D) firms increase the amount of borrowing.

38) Because Whirlpool produces durable goods, the demand for their goods

A) is likely to increase during recession.

B) declines when incomes in the economy are rising.

C) is consistently high, regardless of the state of the economy.

D) tends to follow the business cycle.

39) For the recessions in the United States since the 1950s

A) cyclical unemployment has been non-existent.

B) unemployment rises on average by about 1.2 percentage points 12 months after a recession begins.

C) unemployment falls on average by 2 percentage points 12 months after a recession begins.

D) unemployment rises on average about 5 percentage points 12 months after a recession begins.

40) For the recessions in the United States since the 1950s

A) inflation has been nonexistent.

B) the inflation rate rises on average by about 2.5 percentage points 12 months after a recession begins.

C) the inflation rate falls on average by about 2.5 percentage points 12 months after a recession begins.

D) deflation occurs.