Ch8 Flashcards
The trough of a business cycle occurs when _____ hits its lowest point.
aggregate economic activity
When aggregate economic activity is increasing the economy is said to be in
an expansion
When aggregate economic activity is declining, the economy is said to be in
a contraction
Peaks and troughs of the business cycle are known collectively as
turning points
Who officially determines whether the economy is in a recession or expansion?
National Bureau of Economic Research
Comovement is
the tendency of many economic variables to move together in a predictable way over the business cycle
Persistence
The tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by growth
The idea that the business cycle is recurrent means that
the standard pattern of contradiction-trough-expansion-peak occurs again and again in industrial economies
An economic variable that moves in the same direction as aggregate economic activity is called
procyclical
