The Business Cycle Is Defined as the

question 55

Multiple Choice

The business cycle is defined as the

• A)regular growth rate of the real GDP.
• B)regular fluctuations of real GDP below potential GDP.
• C)irregular fluctuations of prices around real GDP.
• D)periodic but irregular up-and-down movement of total production and other measures of economic activity.
• E)periodic and regular up-and-down movement of total production.

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Definitions:

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Emotional Reactions

Immediate responses to stimuli or situations that involve feelings, ranging from happiness and love to anger and fear.

Internal Locus

A psychological term referring to individuals who believe they have control over their own life events and outcomes, as opposed to external forces.

External Locus

A belief that one's life events are largely controlled by external forces or factors beyond one's personal control.