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Author Question: The period of expansion ends with a ________ and the period of recession ends with a ________. A) ... (Read 120 times)

justinmsk

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on: Jun 29, 2018
The period of expansion ends with a ________ and the period of recession ends with a ________.
 
  A) business cycle peak; business cycle peak B) business cycle trough; business cycle trough
  C) business cycle peak; business cycle trough D) business cycle trough; business cycle peak

Question 2

Suppose the United States experiences a long period of inflation relative to other countries. How will this affect U.S. net exports?
 
  What will be an ideal response?


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kjo;oj

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

If inflation in the United States is higher than inflation in other countries, then prices of products and services produced in the United States increase more rapidly than the prices of products and services of other countries. This difference in the price levels decreases the demand for U.S. goods relative to foreign goods. U.S. exports decrease, imports increase, and U.S. net exports decline.


justinmsk

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Reply 2 on: Jun 29, 2018
Gracias!

cam1229

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Reply 3 on: Yesterday
Wow, this really help

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