Within the context of the AD-AS Model, demand-pull inflation is illustrated as:

During a typical recession, total consumer spending on houses and cars will ________ , and total consumer spending on clothing and services will __________ .

Viewpoint #1: Prices, wages and interest rates are inflexible in the downward direction.Viewpoint #2: Prices, wages and interest rates are fully flexible.

When using the GDP statistics from 1990 and 1999 to determine the growth rate of the economy during this time period, adjustments should be made for:

All of the following items are included in the Consumption Spending (C) category of America’s national income and product accounts EXCEPT:

Viewpoint #1: Prices, wages and interest rates are inflexible in the downward direction.Viewpoint #2: Prices, wages and interest rates are fully flexible.

Which of the following are classified as external shocks to an economy?

  On the diagram of the stereotypical business cycle, the trough is represented by:

Which of the following suggests that lower average prices make it more difficult to cover interest payments and other costs of doing business, causing firms to reduce production?

During a serious recession, we would expect output and employment to fall the most in the: