CHAPTER 8 - CHAPTER 8 1. The immediate determinant of the...

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CHAPTER 8 1. The immediate determinant of the volume of output and employment is the: A) composition of consumer spending. B) ratio of public goods to private goods production. C) level of total spending. D) size of the labor force. Ans: C 2. The phase of the business cycle in which real domestic output declines is called: A) the peak. B) a recovery. C) a recession. D) the trough. Ans: C 3. The production of durable goods varies more than the production of nondurable goods because: A) durables purchases are nonpostponable and the producers of durables are competitive. B) durables purchases are postponable and producers of durables are competitive. C) nondurables purchases are postponable and the producers of nondurables are competitive. D) durables purchases are postponable and producers of durables have monopoly power. Ans: D 4. A recession is a period in which: A) cost-push inflation is present. B) nominal domestic output falls.
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CHAPTER 8 - CHAPTER 8 1. The immediate determinant of the...

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