ECON FINAL EXAM (50 QUESTIONS)/ECON FINAL EXAM (50 QUESTIONS)

  
Question 1
Historical evidence for the U.S. economy indicates that
Answer
recessions have occurred roughly once every six years since the 1960s. 
the unemployment rate usually decreases during a recession and increases shortly after the recession ends.
real GDP usually remains roughly constant during a recession and decreases shortly after the recession ends.
changes in real GDP over the business cycle are largely attributable to changes in investment over the business cycle.
Question 2
Which of the following is most commonly used to monitor short-run changes in economic activity?
Answer
the inflation rate
real GDP
aggregate demand
aggregate supply
Question 3
During recessions investment
Answer
falls by a larger percentage than GDP.
falls by about the same percentage as GDP.
falls by a smaller percentage than GDP.
falls but the percentage change is sometimes much larger and sometimes much smaller.

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