Question : 21) A recession runs from the A) peak of the business : 1228215

21) A recession runs from the

A) peak of the business cycle to its trough.

B) peak of the business cycle to a recovery.

C) expansion of a business cycle to its peak.

D) trough of a business cycle to its peak.

E) trough of a business cycle to its expansion.

22) The U.S. economy is experiencing falling output, falling employment, falling incomes and rising unemployment. These conditions best describe a business cycle ________.

A) expansion

B) peak

C) trend

D) recession

E) trough

23) The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle ________.

A) expansion

B) peak

C) trend

D) recession

E) trough

24) The NBER describes a recession as

A) “a period of significant decline in total output, income, employment, and trade, usually lasting from six months to a year.”

B) “a decrease in real GDP for two successive quarters.”

C) “a decrease in potential GDP for at least six months.”

D) “a decrease in the standard of living for at least one year.”

E) “a one year period with increases in the unemployment rate.”

25) The Great Moderation describes the period

A) of relatively steady growth in real GDP between 1991 and 2008.

B) of relatively steady growth in real GDP after the year 2000.

C) between 2000 and 2008 when potential GDP did not increase.

D) between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP.

E) of very slow growth in real GDP after 1990.

26) Which of the following describe the United States economy in 2008 and and the start of 2009?

A) The economy was in an expansion.

B) The economy was in a recession.

C) Real GDP per person increased.

D) Real GDP reached a peak.

E) None of the above answers is correct.

27) U.S. real GDP

A) precisely measures the improving standard of living in the United States.

B) measures the change in the price level over time.

C) excludes the value of underground production and leisure time.

D) is not as accurate as nominal GDP when measuring standard of living changes over time.

E) includes the value of underground production but excludes the value of leisure time.

28) As measured, GDP omits which of the following?

i.Illegal sales of goods and services

ii.Changes in the amount of leisure time

iii.Household production of goods and services

A) i only

B) i and ii

C) ii and iii

D) i and iii

E) i, ii, and iii

29) Excluding household and underground production leads to

A) underestimation of real GDP but not nominal GDP.

B) overestimation of real GDP but not nominal GDP.

C) overestimation of both real GDP and nominal GDP.

D) underestimation of both real GDP and nominal GDP.

E) underestimation of real GDP an an overestimation of nominal GDP.

30) Goods and services such as environmental quality, leisure time, and household production are not included in GDP because they are not

A) productive activities.

B) for consumption.

C) bought in markets.

D) made for profit.

E) really durable goods.