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Business Cycles and Fluctuations

The passage discusses a business fluctuation influenced by
D.)external shock.
A recession is the period in which real GDP declines for two consecutive quarters.
TRUE
A severe recession with high unemployment, acute shortages, and excess manufacturing capacity is known as
B.)a depression.
Business fluctuations are systematic increases and decreases in real GDP.
FALSE
The index of leading indicators
C.)is used to predict changes in business cycles.
All of the following factors contribute to business cycles EXCEPT
B.)
A recession is the period in which real GDP increase over two consecutive quarters.
FALSE
Which letter on the graph represents a recession in the business cycle?
B.)X
The Roaring Twenties in the graph can be characterized as a period of economic
C.)expansion.
peak
point in the business cycle when real GDP stops increasing

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