All True False questions

Changes in certain economic measures tend to occur before changes in the aggregate level of business activity.

A major cause of the business cycle is thought to be changes in business spending on capital investments and consumer spending on durable goods.

An increase in consumer confidence over several months is likely to indicate a recessionary period.

Changes in certain economic measures that occur after changes in the business cycle are of no use in economic analysis.

Troughs in the business cycle identify points at which economic activity begins to decline.

Economic expansion is reflected in the business cycle as the period between a trough and a peak.

Recessionary periods are periods of economic contraction.

During a recessionary period, plant capacity is fully utilized.

An increase in unemployment claims over several months is likely to indicate a recessionary period.

During a recessionary period, aggregate demand decreases.

Changes in the business cycle are measured in terms of changes in real gross domestic product.

Leading indicators are used to predict changes in the business cycle.