During the Past Three Quarters Real GDP Has Fallen by 4

question 105

Multiple Choice

During the past three quarters real GDP has fallen by 4 percent and the unemployment rate has climbed from 5 to 7 percent. Economists predict that in the next quarter GDP will show a modest growth of 0.5 percent and unemployment may fall to 6.8 percent. The economy is most likely:

• A) at the peak of the business cycle.
• B) in a contraction phase.
• C) in an expansion phase.
• D) at the trough of the business cycle.

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Definitions:

Apathetic

Showing or feeling no interest, enthusiasm, or concern for anything.

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Earliest Part

The initial segment or beginning portion of something, typically referring to time, structures, or processes.