-Refer to Figure 5-1 Above

question 99

Multiple Choice

-Refer to Figure 5-1 above.If the economy moves from point A to B on the graph,it is going through a(n)

• A) peak
• B) trough
• C) expansion
• D) boom
• E) recession

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Definitions:

Positive Economics

Positive Economics is the branch of economics that deals with the description and explanation of economic phenomena, focusing on factual and cause-and-effect relationships.

Economic Variables

Quantitative measures that represent aspects of the economy or a company and can change over time, such as GDP, inflation rate, and unemployment rate.

Policy Makers

Individuals or groups responsible for making decisions that affect the economy, society, or governance.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the economy ought to be like.