Which phase of the business cycle would be most closely associated with an economic contraction?

Peak
Trough
Recovery
Recession

Solutions

Expert Solution

Recession

The cycle of short term ups and downs in the economy is known as business cycle. The main measure of how an economy is doing is aggregate output. Recession are periods during which aggregate output declines, the total quantity of goods and services produced in the economy in a given period. Economic contraction also refers to a business cycle in which aggregate output declines. Therefore recession is most closely associated with an economic contraction.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

An upswing or recovery phase in the business cycle is most likely to be associated with...

An upswing or recovery phase in the business cycle is most likely to be associated with lower employment and lower prices lower employment and higher prices higher employment and lower prices higher employment and higher prices Which of the following is used by the Federal Reserve to reduce the money supply? Increasing the prime rate Increasing the discount rate Increasing taxes Decreasing government expenditures The gross domestic product (GDP) may provide an inaccurate measurement of the productive activity within a...

4.1 Examine which phase of the business cycle is linked to a contraction in gross domestic...

4.1 Examine which phase of the business cycle is linked to a contraction in gross domestic product. Use a diagram to motivate your answer. (9) 4.2 Three consecutive contractions in gross domestic product implies the onset of recession for an economy. Compile a fiscal policy to take an economy out of this undesirable situation. (11)

What are the four phases of the business cycle? Which phase of the business cycle would...

What are the four phases of the business cycle? Which phase of the business cycle would be the best time to purchase a large ticket item? How do you calculate the labor force participation rate? Who is accounted for in our country’s labor force? How is our country’s unemployment rate calculated? In one to two sentences, please define the term, “full employment?” In one to two sentences, what is a discouraged worker? What are the four types of unemployment? Which...

QUESTION FOUR [20] 4.1 Examine which phase of the business cycle is linked to a contraction...

QUESTION FOUR [20] 4.1 Examine which phase of the business cycle is linked to a contraction in gross domestic product. Use a diagram to motivate your answer. (9) 4.2 Three consecutive contractions in gross domestic product implies the onset of recession for an economy. Compile a fiscal policy to take an economy out of this undesirable situation. (11)

Which trait would be most closely associated with high levels of mobility?

Which trait would be most closely associated with high levels of mobility? A body cavity Germ layers A cuticle Cephalization Incomplete metamorphosis

Racism is most closely associated with which of the following?

Racism is most closely associated with which of the following? ideologies structural Functionalism education Thistoricity

Endogenous growth is most closely associated with what theory of economic development?

Endogenous growth is most closely associated with what theory of economic development?Choose one:A. Todaro's model of growthB. the Solow modelC. New Growth TheoryD. classical growth theory

Which best describes peak phase of economic growth? a. The point by which business cycle begins...

Which best describes peak phase of economic growth? a. The point by which business cycle begins to decline b. The point by which business cycle begins to crowd out c. The point by which business cycle begins to perform well d. The point by which business cycle begins to evolve

Cellular respiration is most closely associated with the

Cellular respiration is most closely associated with the Multiple Choice mitochondrion. Golgi apparatus. microtubule. ribosome. chloroplast.

The function most closely associated with Structure A

The function most closely associated with Structure A A) Packages, modifies, and segregates proteins for secretion. B) Site of protein synthesis. C) Granular, threadlike material composed of DNA and histones. D) Site of ATP synthesis.

Subjects