Econ Chapter 13 Notes Flashcards

1
Q

What is the Business Cycle?
(Draw and Define)

A

Regular Ups and Downs of Real GDP

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2
Q

What are Economic Indicators?

A
  • Used to create forecasts of future economic activity
  • Procyclic and Countercyclic
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3
Q

What is Procyclic?

A

When they go up, economy is doing well
When they go down, economy is doing poorly

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4
Q

Examples of Procyclic?
(List at least two)

A

Real GDP
Retail Sales
Stock Prices
Housing Starts
Personal Income

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5
Q

What is Countercyclic?

A
  • Moved in opposite direction of the business cycle
  • When they go up, the economy is doing poorly
  • When they go down, the economy is doing well
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6
Q

Examples of Countercyclic?
(List at least two)

A
  • Unemployment Rate
  • Consumer Debt
  • Business Debt
  • Business Inventories
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