10 Questions
What term is used to describe the period of time during which aggregate activity is falling?
Contraction
What is the term for the highest point of aggregate economic activity in a business cycle?
Peak
During expansions, what tends to happen to output and employment in most industries?
They rise
What term is used to describe a severe contraction in a business cycle?
Depression
How is a business cycle typically measured?
From peak to trough
Which term is used to describe the period of time during which aggregate activity grows in a business cycle?
Expansion
What is the correct term for the lowest point of aggregate economic activity in a business cycle?
Trough
During a recession in a business cycle, what tends to happen to output and employment in most industries?
Fall
What term is used to describe fluctuations in the overall economic activity, not just a single variable like real GDP?
Business cycles
In a severe contraction phase of a business cycle, what term is used to describe this condition?
Depression
Learn about the fluctuations in aggregate economic activity known as business cycles, which involve expansions and contractions occurring simultaneously in many economic activities. Explore the concepts of aggregate economic activity, comovement, and the patterns seen in output and employment during expansions and contractions.
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