first test - Chapter 1 Review questions: 2, 4, 5 & 6...

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Chapter 1 Review questions: 2, 4, 5 & 6 Chapter 2 Chapter 3  Review questions: 1, 2, 5, 6, 8, 9, 12, 14 & 15 No van los numerical =) Development Chapter 1 2) The Business cycle is a short-run period of expansion and contraction in economic activity. Recession is accompanied with an increase in unemployment (people who are actively looking, but can’t find a job). The unemployment rate does never reach zero. 4) The highest deficits were created after war, and the latest was the great depression which occurred from 1929-1933. 5) When imports exceed exports a trade deficit occurs, when exports exceed imports a trade surplus occurs. In recent years the United States has had a trade deficit but In the past (1900-1970) it had a trade surplus. 6) Macroeconomists use their skills to do forecasting, macroeconomic analysis, basic research, and data development for government, nonprofit organizations, and private businesses. Macroeconomic research is used in the formulation and testing of economic theories. Keynesian economists believe that government should intervene in order for the economy to prosper, classical economists believe in the invisible hand. Chapter 2 1) There are 3 approaches to measure economic growth: the product approach (adding the market values of goods and services produced, excluding any goods used up in intermediate stages of production), the income approach
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This note was uploaded on 08/09/2011 for the course ECONOMICS --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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first test - Chapter 1 Review questions: 2, 4, 5 & 6...

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