Historical Evidence for the U.S.economy Indicates That

question 9

Multiple Choice

Historical evidence for the U.S.economy indicates that

• A)recessions have occurred roughly once every six years since the 1960s.
• B)the unemployment rate usually decreases during a recession and increases shortly after the recession ends.
• C)real GDP usually remains roughly constant during a recession and decreases shortly after the recession ends.
• D)changes in real GDP over the business cycle are largely attributable to changes in investment over the business cycle.

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Definitions:

Bank Account

A financial arrangement with a banking institution where funds can be deposited for safekeeping, withdrawal, or investment.

Supply Curve

Is a graphical representation showing the relationship between the price of a good or service and the quantity supplied.

Loanable Funds

The money available for borrowing, influenced by savings and investments, in financial markets.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specified period.