Business Cycle and Economic Growth(Complete solutions)
Business cycle correct answersalternating periods of growth and decline that the economy goes
through
GDP correct answersGross Domestic Product- the total market value of all final goods and
services produced annually in an economy
Leading indicator correct answersStatistical data that predict the status of the economy three to
twelve months in the future.
Price stability correct answersThe condition that exists when overall price levels remain
relatively constant over a period of time.
Capital widening correct answersan increase in capital stock that keeps pace with the expanding
labor force and depreciation
Upswing correct answersA period of economic expansion.
Downswing correct answersA period of shrinking economic activity.
Real GDP correct answersGDP after adjustments for inflation
Nominal GDP correct answersthe GDP measured in terms of the price level at the time of
measurement (unadjusted for inflation)
Indicators correct answersMeasures of economic activity used by economists to predict or
confirm the general direction of the economy as a whole. Measures used be technical analysts to
forecast the movement of a stock or the market in general
Economic welfare correct answersthe benefit or satisfaction the individual or society gets from
the allocation of resources.
Lagging indicator correct answersstatistical data that measure economic trends after the overall
economy has changed.
Standards of living correct answers"The quality of peoples lives. It will depend on the level of
incomes as well as other measures like the number of doctors, nurses, teachers and so on."
Capital deepening correct answersprocess of increasing the amount of capital per worker
Contraction correct answersa period of economic decline marked by falling real GDP
Expansion correct answersa period of economic growth as measured by a rise in real GDP
GDP per capita correct answerstotal value of goods and services produced in a year divided by
the population
Business cycle correct answersalternating periods of growth and decline that the economy goes
through
GDP correct answersGross Domestic Product- the total market value of all final goods and
services produced annually in an economy
Leading indicator correct answersStatistical data that predict the status of the economy three to
twelve months in the future.
Price stability correct answersThe condition that exists when overall price levels remain
relatively constant over a period of time.
Capital widening correct answersan increase in capital stock that keeps pace with the expanding
labor force and depreciation
Upswing correct answersA period of economic expansion.
Downswing correct answersA period of shrinking economic activity.
Real GDP correct answersGDP after adjustments for inflation
Nominal GDP correct answersthe GDP measured in terms of the price level at the time of
measurement (unadjusted for inflation)
Indicators correct answersMeasures of economic activity used by economists to predict or
confirm the general direction of the economy as a whole. Measures used be technical analysts to
forecast the movement of a stock or the market in general
Economic welfare correct answersthe benefit or satisfaction the individual or society gets from
the allocation of resources.
Lagging indicator correct answersstatistical data that measure economic trends after the overall
economy has changed.
Standards of living correct answers"The quality of peoples lives. It will depend on the level of
incomes as well as other measures like the number of doctors, nurses, teachers and so on."
Capital deepening correct answersprocess of increasing the amount of capital per worker
Contraction correct answersa period of economic decline marked by falling real GDP
Expansion correct answersa period of economic growth as measured by a rise in real GDP
GDP per capita correct answerstotal value of goods and services produced in a year divided by
the population
