100%(2)2 out of 2 people found this document helpful
This preview shows page 1 - 2 out of 4 pages.
Diff: 1 A-Head 14.1: The Business Cycle AACSB: Application of knowledge 26) The rate of inflation does not necessarily increase during the expansion phase of the business cycle. Diff: 3 A-Head 14.1: The Business Cycle AACSB: Analytic thinking ESSAY. Write your answer in the space provided or on a separate sheet of paper. 27) What type of consumer good is most affected by the business cycle—durable goods or non-durable goods? Why? Diff: 2 A-Head 14.1: The Business Cycle AACSB: Application of knowledge 28) Outline the phases of the business cycle. Diff: 2 A-Head 14.1: The Business Cycle AACSB: Analytic thinking 29) Suppose you are an advisor to the federal government. You are asked to look at macroeconomic data to evaluate whether the economy has entered an economic contraction this year. Which data do you look at? How does the economy behave at the onset of an economic contraction?