ECON 252 CH 12 Questions with Correct Answers (Grade A+)

ECON 252 CH 12 Questions with Correct Answers (Grade A+)

Question 1: Economic fluctuations are ____________. A. long-run changes in the growth of GDP. B.
changes to the trend line of GDP growth. C. economic shocks characterized by downward wage rigidity
and multipliers. D. short-run changes in the growth of GDP.

Answer: D

Question 2: Recessions are periods in which the economy ____ , while economic expansions are defined
as the periods _______.

Answer: - contracts
- between recesions

Question 3: An economic expansion begins ____________. A. after the peak of GDP growth. B. at the
end of a recession. Your answer is correct. C. at the midpoint between the trough and peak of GDP
growth. D. in the middle of a recession.

Answer: B

Question 4: In the United States, recessions are usually defined as ____________. A. two consecutive
months of negative growth in real GDP. B. any period of negative growth in real GDP. C. two
consecutive quarters of negative growth in real GDP. Your answer is correct. D. two consecutive
quarters of negative growth in nominal GDP.

Answer: C

Question 5: The average weekly hours worked by manufacturing workers is likely to be _____with real
GDP.

Answer: positively correlated

Question 6: The average number of initial applications for unemployment insurance is likely to be ____
with real GDP.

Answer: negatively correlated

Question 7: The amount of new orders for capital goods unrelated to defense is likely to be _____ with
real GDP.

Answer: positively correlated




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