) A complete business cycle is deseribed, in an appropriake onder,by wbich of ex
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Question
) A complete business cycle is deseribed, in an appropriake onder,by wbich of expansion, recession, trough, peak stat of an 6) Which of the following is a leading economic indicator that would indicate the st A) . drop in the number of new firms being started B) a decline in the stock market Dns for unenployment compensation Use the graph below to anrwer question 7 7) Which phase of the business cycle would be most closely associated with an economic contraction? A. A B. B C. c D. D Section III Economic Growth 8) The theory of economic growth focuses on the A) growth of real income equality in the long run; not on the growth of real income in the short run. B) growth of resources in the long run, not on the efficiency of ressource use in the short run. ) growth of potential output over the long run, not on fluctuations in the level of economic activity in the short run. D) advancements in technology over the short-run. 9) Holding all else constant, a country's standard of living will decline if its A) nominal GDP grows at a faster rate than real GDP B) nominal GDP grows at a slower rate than real GDP C) the rate of population growth is less than the rate of growth of real GDP D) the rate of population growth exceeds the rate of growth of real GDP.Explanation / Answer
Considering the question 5, 6 is not clear, Answers has been provided for Question 7 onwards.
7) option B is correct. Economic contraction means when the economy is in declining stage. Till the time the business cycle is declining it is called contraction and when it reaches to trough (C) it picks up to expand.
8) option C is correct. Economic growth is related to the increase in goods and services in the economy which is closely related to option C.
9) option D. Standard of living can be defined by the per capita income. So if the population increase at a rate which is more than the rate of real GDP growth then the per capita income will decrease and the standard of living will decline.
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