Economic Fluctuations or Business Cycles

question 36

Multiple Choice

Economic fluctuations or business cycles:

• A)measure changes in the total number of new businesses started during a year.
• B)are fluctuations in the Dow Jones industrial average relative to a long-term growth trend.
• C)look at the role played by business on the level of unemployment.
• D)are fluctuations in the level of economic activity relative to a long-term growth trend.
• E)are changes in government spending that occur over a period of time.

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Definitions:

Inverse Demand Function

A mathematical function that shows the relationship between the price of a good and the quantity demanded, with price as a function of quantity.

Unit Tax

A fixed amount of tax imposed on a product, regardless of its price.

Total Costs

The sum of all costs incurred by a firm in producing a certain level of output, including both fixed and variable costs.

Edited and Typeset

The process of preparing and arranging written material for printing or digital publication by correcting, making changes, and setting the final layout.