Economic Indicators and the Business Cycle
What measure of economic activity is often used to gauge the overall health and performance of an economy?
If the Federal Reserve sets a higher inflation target, what short-term effect might this have on unemployment?
What is generally expected to happen with consumer spending during an expansion phase of the business cycle?
If a central bank engages in contractionary monetary policy during an inflationary period what is likely result within business cycles?
How would a sustained increase in exchange rate affect the domestic economy of a small open economy heavily dependent on raw material exports?
If a country is experiencing high inflation with moderate growth, which monetary policy action could potentially bring down the inflation rate without significantly hindering economic growth?
In response to high inflation rates, how might expansionary fiscal policy affect real GDP in the short run if it results in crowding out?
How are we doing?
Give us your feedback and let us know how we can improve
What term describes periods of expansion followed by periods of recession in the economy?
What role does government play when it provides unemployment benefits during a recession?
What is one characteristic of the expansion phase of the business cycle?