1. Which of these economic variables is procyclical and coincident?
consumer spending
stock prices
the government bond spread
All of these
None of these
2. A countercyclical variable ________.
moves up during expansions and down during contractions
is another term for an acyclical variable
moves in the same direction as aggregate economic activity
All of these
None of these
3.Menu costs are an important source of price stickiness because ________.
printing menus is costly
putting items "on sale" reduces firms' revenue
frequent price changes may lead to losing customers
All of these
None of these
4.Interest rates spreads between corporate and government bonds ________.
are procyclical
have the same characteristics as the government interest rate spreads
are countercyclical
All of these
none of these
5.Arthur Burns and Wesley Mitchell first described business cycles as ________.
fluctuations in consumer preferences
fluctuations in the price of bicycles
fluctuations in aggregate economic activity
All of these
None of these
6.Accord?%??to the flexible price framework ________.
an increase in inflation raises real savings
an increase in the money supply raises real output
an increase in inflation lowers real investment
All of these
None of these
7.The interest rates paid on Treasury bills ________.
go down in booms
go up in recessions
are a coincident indicator
All of these
None of these
8.Which of these economic variables is procyclical?
unemployment
the credit spread
investment spending
All of these
None of these
9.what did the U.S. business cycles in the early 1890s and early 1930s have in common?
the spread of bank failures
severe recessions
high unemployment and low inflation, even deflation
All of these
None of these
10.The Conference Board does a good job predicting recessions for reasons that include ________.
a focus on fewer than five leading variables
exclusive use of real-time data
revisions of the components of its monthly index
All of these
None of these