Short- Run Fluctuations in Real GDP Around Its Trend Value

question 86

Multiple Choice

Short- run fluctuations in real GDP around its trend value are

• A)generally ignored by economists, because these fluctuations are constant and predictable.
• B)referred to in economics as "background noise".
• C)unimportant to the study of macroeconomics.
• D)referred to in economics as "the business cycle".
• E)generally ignored by economists, because these fluctuations do not affect behaviour of other variables such as the unemployment rate.

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Definitions:

Shipment Contract

This is a type of sales contract where the seller is required to send the goods to the buyer, but the title and risk of loss pass to the buyer upon the seller's delivery to the carrier.

Conforming Goods

Products that meet the specifications and quality standards as outlined in a contract agreement between a buyer and seller.

Destination

A place to which a person or thing is going or being sent.

Agreed-On Remedy

A pre-determined solution or compensation for breach of contract that parties consent to during the formation of a contract.