The Tendency for Declines in Economic Activity to Be Followed

question 71

Multiple Choice

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 is called

• A)persistence.
• B)comovement.
• C)periodicity.
• D)recurrence.

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Definitions:

Price-Consumption Curve

A curve that shows how a consumer's optimal choices change as the price of a good changes, holding income and other prices constant.

Income

Money received, especially on a regular basis, for work or through investments.

Engel Curve

A graph that illustrates how household expenditure on a particular good or service varies with income.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.