Author Question: The four phases of a single business cycle are, in order, the trough, followed by a recovery, then a ... (Read 83 times)

brutforce · **on:** Jun 30, 2018

The four phases of a single business cycle are, in order, the trough, followed by a recovery, then a recession, ending with a peak.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally by 1,000 billion and cause inflation. If the marginal propensity to consume (MPC) is 0.80, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:
a. government spending by 200 billion.
b. taxes by 100 billion.
c. taxes by 1,000 billion.
d. government spending by 1,000 billion.