To Identify the Onset of a Recession, the National Bureau

question 13

Multiple Choice

To identify the onset of a recession, the National Bureau of Economic Research (NBER) Business Cycle Dating Committee:

• A) uses data on nominal GDP for two consecutive quarters.
• B) uses a range of indicators including real GDP, employment and income.
• C) identifies declining economic activity solely based on a fall in real GDP.
• D) uses a procedure that determines the dates of peaks and troughs mainly on the basis of employment.

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Definitions:

Dependency Theory

A theory suggesting that economic disparities between countries are created and maintained by global capitalist systems, where wealthy countries exploit poorer ones.

Neoliberal Globalization

The process of global integration where emphasis is placed on free-market policies, minimal state intervention, and liberalized international trade.

Foreign Investment

The investment of capital from one country into businesses, real estate, or projects within another country, aiming to achieve financial returns.

World System

A viewpoint that emphasizes the global interconnections and dependencies of economies and cultures.