Question

In: Economics

Which of the following describes a coincident indicator? Select all that apply. Manufacturing sales Business inventories...

  1. Which of the following describes a coincident indicator? Select all that apply.
  1. Manufacturing sales
  2. Business inventories
  3. New investments
  4. Current industrial production

  1. There are four phases of the business cycle. Which of the following sequences most likely exists?
  1. Trough, recession, expansion, peak
  2. Trough, expansion, recession, peak
  3. Peak, expansion, trough, recession
  4. Peak, recession, trough, expansion
  1. Which type of expenditure is included when calculating Gross Domestic Product?
  1. Purchase of nondurable goods
  2. Purchase of farmland
  3. Purchase of used items
  4. Purchase of goods for production

Solutions

Expert Solution

Select option A and option D. These are the indicators that indicate current situation in the economy in terms of recession or expansion by indicating the real time values of manufacturing, sales, personal income, production by the industry, etc

Option D. Recession is the decline in economic activity which occurs soon after the peak. Severe decline is called a trough and afterwards the economy starts expanding so that it can reach the peak again

Option A is correct. both the durable and nondurable goods are considered apart of consumption expenditure which is included in the GDP.

Rahul Sunny answered 2 years ago
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