Comovement Is

question 61

Multiple Choice

Comovement is

• A)the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth.
• B)the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies.
• C)the tendency of many economic variables to move together in a predictable way over the business cycle.
• D)the idea that peaks and troughs of the business cycle occur at regular intervals.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the economic benefit to consumers.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive.