A recession is ?

Related Mcqs:

1. Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?

   A. sell 4 million pounds of tin
   B. sell 8 million pounds of tin
   C. buy 4 million pounds of tin
   D. buy 8 million pounds of tin

2. It has become conventional classify a recession as a period where national output falls for _________ or more?

   A. three years
   B. six months
   C. a year
   D. two years

3. Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?

   A. People will reduce their price expectations and the short run aggregate supply will shift right
   B. People will raise their price expectations and aggregate demand will shift left
   C. People will raise their price expectations and the short run aggregate supply will shift left
   D. People will reduce their price expectations and aggregate demand will shift right

4. Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to ?

   A. Shift aggregate demand to the left
   B. Shift short run aggregate supply to the left
   C. shift aggregate demand to the right
   D. shift short-run aggregate supply to the right

5. Rapid increase in the price level during periods of recession of high unemployment are known as ?

   A. slump
   B. inflation
   C. stagflation
   D. stagnation

6. The form of international price discriminations (dumping) normally associated with economic recession or excess inventories in the exporting nation is known as ?

   A. Predatory dumping
   B. sporadic dumping
   C. persistent dumping
   D. year end dumping

7. In a recession ?

   A. Unemployment is likely to be low
   B. Prices are likely to increase
   C. Growth is negative
   D. Growth is slow

8. In a recession a government ?

   A. Is likely to want to decrease demand in the economy
   B. Is likely to want to decrease demand in the economy
   C. Is likely to want to stabilise demand in the economy
   D. Is likely to want to increase supply in the economy

9. If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?

   A. depreciate
   B. not be affected
   C. fluctuate more than it would do therwise
   D. appreciate

10. A period of unemployment due to recession will ?

    A. increase a worker’s current income and permanent income
    B. reduce a worker’s current income but not necessarily their permanent income
    C. affect neither the current nor the permanent income of a worker
    D. reduce a worker’s permanent income but not their current income