Test bank forMacroeconomics 9th Edition by Andrew Abel (Author), Ben Bernanke (Author)|LATEST VERSTION WITH ALL CHAPTERS

, Macroeconomics, 9e, Global Edition (Abel/Bernanke/Croushore)
,. ,. ,. ,.



Chapter 8 ,.




,. Business
Cycles
,.




8.1
1) One ,.of ,.the ,.first ,.organizations ,.to ,.investigate ,.the ,.business ,.cycle ,.was

A) the ,.Federal ,.Reserve ,.System.
B) the ,.National ,.Bureau ,.of ,.Economic ,.Research.
C) the ,.Council ,.of ,.Economic ,.Advisors.
D) the ,.Brookings ,.Institution.
,. Answer: , . B


2) The ,.entire ,.sequence ,.of ,.a ,.decline ,.in ,.aggregate ,.economic ,.activity ,.followed ,.by ,.recovery,
,. measured ,.from ,.peak ,.to ,.peak ,.or ,.trough ,.to ,.trough ,.is ,.a
A) long-run ,.trend.
B) potential ,.output ,.path.
C) business ,.cycle.
D) recurrent ,.comovement.
,. Answer: , . C


3) A ,.detailed ,.history ,.of ,.business ,.cycles ,.is ,.known ,.as ,.a
A) historical ,.decomposition.

B) trend ,.analysis.
C) Hodrick—Prescott ,.filter.
D) business ,.cycle ,.chronology.
,. Answer: , . D

,4) The ,.dates ,.of ,.turning ,.points ,.are ,.determined ,.by ,.a

committee ,.from ,.the , . A) ,.FBI. ,.B) ,.BLS. ,.C) ,.BEA. ,.D) ,.NBER.
,.



Answer: , . D


5) Business ,.cycles ,.all ,.display ,.the ,.following ,.characteristics ,.except
A) a ,.period ,.of ,.expansion ,.followed ,.by ,.one ,.of ,.contraction.
B) comovement ,.of ,.many ,.economic ,.variables.
C) rising ,.prices ,.during ,.an ,.expansion ,.and ,.falling ,.prices ,.during ,.the ,.contraction.
D) they ,.last ,.a ,.period ,.of ,.one ,.to ,.twelve
years. ,.Answer: , . C
,.




6) The ,.trough ,.of ,.a ,.business ,.cycle ,.occurs ,.when ,. hits ,.its ,.lowest ,.point.
A) inflation ,.B) ,.the ,.money ,.supply ,.C) ,.aggregate ,.economic ,.activity ,.D) ,.the ,.unemployment ,.rate

,. Answer: ,.C


7) The ,.low ,.point ,.in ,.the ,.business ,.cycle ,.is ,.referred ,.to ,.as ,.the
A) expansion. ,.B) ,.boom. ,.C) ,.trough. ,.D) ,.peak.
,. Answer: , . C


8) When ,.aggregate ,.economic ,.activity ,.is ,.increasing, ,.the ,.economy
is ,.said ,.to ,.be ,.in
,.



A) an ,.expansion. ,.B) ,.a ,.contraction. ,.C) ,.a ,.peak. ,.D) ,.a ,.turning
point. ,.Answer: , . A
,.



9) The ,.high ,.point ,.in ,.the ,.business ,.cycle ,.is ,.referred ,.to ,.as ,.the

A) turning ,.point. ,.B) ,.peak. ,.C) ,.boom. ,.D) ,.trough.
,. Answer: , . B

, 10) When ,.aggregate ,.economic ,.activity ,.is ,.declining, ,.the ,.economy ,.is
,.said ,.to ,.be ,.in



A) a ,.contraction. ,.B) ,.an ,.expansion. ,.C) ,.a ,.trough. ,.D) ,.a ,.turning ,.point.

,. Answer: ,.A


11) Peaks ,.and ,.troughs ,.of ,.the ,.business ,.cycle ,.are ,.known ,.collectively ,.as
A) volatility. ,.B) ,.turning ,.points. ,.C) ,.equilibrium ,.points. ,.D) ,.real ,.business ,.cycle ,.events.
,. Answer: ,.B


12) Turning ,.points ,.in ,.business ,.cycles ,.occur ,.when
A) a ,.new ,.business ,.cycle ,.is ,.initiated ,.at ,.the ,.trough.
B) the ,.economy ,.hits ,.the ,.peak ,.or ,.trough ,.in ,.the ,.business ,.cycle.
C) the ,.business ,.cycle ,.begins ,.to ,.follow ,.a ,.new ,.pattern ,.that ,.differs ,.from ,.previous ,.business ,.cycles.
D) a ,.new ,.business ,.cycle ,.is ,.initiated ,.at ,.the
peak. ,.Answer: , . B
,.




13) Who ,.officially ,.determines ,.whether ,.the ,.economy ,.is ,.in ,.a ,.recession ,.or ,.expansion?
A) The ,.president ,.of ,.the ,.United ,.States
B) The ,.U.S. ,.Congress
C) The ,.Federal ,.Reserve ,.Board ,.of ,.Governors
D) The ,.National ,.Bureau ,.of ,.Economic ,.Research
,. Answer: , . D


14) Which ,.group ,.within ,.the ,.National ,.Bureau ,.of ,.Economic ,.Research ,.officially ,.determines ,.whether
,.the ,.economy ,.is ,.in ,.a ,.recession ,.or ,.expansion?



A) The ,.G-4
B) The ,.Business ,.Cycle ,.Dating ,.Committee
C) The ,.Business ,.Cycle ,.Governors