Question

1-The length of a complete business cycle-

A-varies from about 1 to 2 years to as long as 5 years.

B-is generally about 3 years.

C-varies greatly in duration and intensity.

2. Even though the United States has an unemployment compensation program that provides income for those out of work, should we still worry about unemployment?

A-Yes, because the unemployment compensation program merely gives the unemployed enough funds for basic needs.

B-Yes, because the unemployment compensation program is not available to workers in the service occupations.

C-No, since the program gives the unemployed only enough funds for basic needs, it will encourage them to find jobs quicker.

D-No, since the unemployment compensation helps keep demand in the economy high, workers will eventually return to their jobs.

3. The Bureau of Labor Statistics (BLS) calculates the inflation rate from one year to the next by

A-adding the CPI of the previous year to the CPI of the most recent year, and then dividing by the average of both years.

B-subtracting the CPI of the previous year from the CPI of the most recent year, and then dividing by the CPI of the most recent year.

C-adding the CPI of the previous year to the CPI of the most recent year, and then dividing by 2.

D-subtracting the CPI of the previous year from the CPI of the most recent year, and then dividing by the CPI of the previous year.

4. Who gains from inflation?

A-Borrowers

B-Lenders

C-No one benefits from inflation.

D-Those with the most skill.

Answer 1

1.)option C is correct as , The duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length.

2.)option c is correct , It is meant to provide a source of income for jobless workers until they can find employment. In order to be eligible for it, certain criteria must be satisfied, such as having worked for a minimum stipulated period and actively looking for employment. Unemployment compensation, generally provided by an unemployment check or a direct deposit, provides partial income replacement for a defined length of time or until the worker finds employment, whichever comes first.

3.)option D is correct

4.)A is correct , f wages increase with inflation, and if the borrower already owed money before the inflation occurred, the inflation benefits the borrower. This is because the borrower still owes the same amount of money, but now they more money in their paycheck to pay off the debt. This results in less interest for the lender if the borrower uses the extra money to pay off their debt early.