QUESTION 22
The term "business cycles" refers to
changes in overall business activity, as evidenced by changes in real GDP, employment, and the price level.
changes in the general price level from inflation to deflation, or vice versa.
changes in the full employment level.
changes in the value of the dollar.
QUESTION 23
An increase in supply will have what effect on equilibrium price and quantity?
Price will increase, quantity will decrease.
Price will decrease, quantity will increase.
Both price and quantity will increase.
Both price and quantity will decrease.
QUESTION 24
A recession may be defined as
a period during which the rate of growth of real GDP is very low or is negative.
an increase in real GDP from one period to the next.
no change in real GDP over a period of time.
no change in nominal GDP over a period of time.
QUESTION 25
When the government raises revenue by printing money, it is said to have imposed an inflation tax.
True
False