ch3 - Exam Name_

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The defining feature of business cycles is that they A) are fluctuations about trend in real GDP. B) measure prospects for future growth in the economy. C) measure standards of living and productivity. D) are inherently bad. E) represent the underlying trend of real GDP in the economy. 1) 2) A business cycle trough is a A) minimum deviation from trend in real GDP. B) small positive deviation from trend in real GDP. C) small negative deviation from trend in real GDP. D) relatively large negative deviation from trend in real GDP. E) relatively large positive deviation from trend in real GDP. 2) 3) amplitude of the business cycle is A) the size of the minimum deviation from trend. B) the amount of volatility in the business during one year. C) where the turning points of the business cycle occur. D) the size of the maximum deviation from trend. E) the amount of employment and real GDP changes during one year. 3) 4) Why is forecasting GDP in the long run so difficult? A) structural and statistical forecasting provide differing results B) there is no regularity in the frequency and amplitude of fluctuations in real GDP C) these is an absence of data that provides any information on future trends D) current models are not sophisticated enough to conduct this exercise E) there is no expertise in forecasting the long run trend in real GDP 4) 5) Business cycle persistence refers to the property that A) real GDP tends to stay in the peaks and troughs of the business cycle. B) real GDP is rarely exactly at trend. C) business cycles are persistently hard to predict.
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This note was uploaded on 02/27/2011 for the course ECON 2051 taught by Professor Mckeon during the Spring '11 term at UWO.

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ch3 - Exam Name_

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