Which statement best describes why it is difficult to sell a home during a recession?
Demand greatly decreases.
Which statements best describe how governments respond to changes in the business cycle? Check all that apply.
_Governments change their policies.Governments reduce spending_
GRAPH: This is a graph of the business cycle.
Time is measured along the x-axis. What is measured along the y-axis?
economic output
Which of the following is a characteristic of the prosperity phase of the business cycle?
high levels of production
Which best describes how a recession develops as demand and production decrease?
The recession feeds on itself.
Read a passage from a speech given by President Barack Obama.
Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit . . . And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits.
-President Barack Obama,
February 4, 2009
Which statement best explains this passage?
It describes government measures to stimulate demand and bring about a recovery.
The graphs show the US unemployment rate and the price of whole milk between 2006 and 2012.
What do these graphs indicate about the relationship between employment levels and prices during economic cycles?
As unemployment rates rise, average prices fall.
Which best describes the nature of cause and effect in the context of the business cycle?
Each effect has other effects.
Which best describes what is represented in the business cycle model?
macroeconomic trends
During a recession, what is one way governments try to encourage growth?
by increasing unemployment benefits
