The NBER describes a recession as
A) a decrease in the standard of living for at least one year.
B) a decrease in potential GDP for at least six months.
C) a one year period with increases in the unemployment rate.
D) a period of significant decline in total output, income, employment, and trade, usually lasting from six months to a year.
E) a decrease in real GDP for two successive quarters.
Question 2
The above figure shows the market for game day t-shirts. If the price of t-shirts is 10, then
A) there is a surplus and the price of t-shirts will fall.
B) there is a shortage and the price of t-shirts will fall.
C) there is a shortage and the price of t-shirts will rise.
D) there is a surplus and the price of t-shirts will rise.
E) the market is in equilibrium.
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