The Federal Reserve Bank Just Issued Its Economic Report on the U.S

question 111

Multiple Choice

The Federal Reserve Bank just issued its economic report on the U.S. economy for the quarter just ended. The following are some of the key points mentioned in the report: "Economic activity has continued to grow at a moderate pace since the last report."
"Manufacturers report that business activity has picked up considerably in recent weeks."
"Tourism activity has strengthened, no longer held back by harsh weather."
"General merchandise retailers report that sales rebounded strongly in April and early May."
"Retail contacts generally say that inventories are at satisfactory levels, that prices are mostly steady, and that the degree of discounting is little changed from a year ago."
Based on these economic forces, you can conclude

• A) that the economy is entering the depression stage of the business cycle.
• B) that the economy is in the prosperity stage of the business cycle and consumers' buying power is declining.
• C) that the economy is in the recession stage of the business cycle and consumers' buying power is increasing.
• D) that the economy is in the recession stage of the business cycle and consumers' buying power is declining.
• E) that the economy is in the prosperity stage of the business cycle and consumers' buying power is increasing.

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Definitions:

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.

Seller

An individual or entity that offers goods or services for sale.

Cash Discount

An incentive for early payment, reducing the buyer's total amount owed.

Net

Net signifies the final amount remaining after all deductions have been made, such as expenses, taxes, or discounts, from a total or gross amount.