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What is economy current stage in business cycle

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Ch. 27: Business Cycles, Unemployment, and Inflation

1. What is the economy's current stage in the business cycle? Support your answer with data on the real GDP growth rate, the unemployment rate, and the CPI inflation rate. You may obtain these data from the Bureau of Economic Analysis website.

2. What are primary phases of the business cycle?

3. How does inflation affect the economy's level of real output?

Ch. 28: Basic Macroeconomic Relationships

4. Markets may be local, national, or global. The extent and size of the market is, in part, determined by how easy it is for suppliers to offer their product to buyers and how easy it is for buyers to find suppliers. How has the Internet expanded the extent and size of markets for goods and services? What specific examples can you cite? How do you see technology further expanding market reach in the future?

5. How do changes in income affect consumption (and saving)?

6. What are factors other than income that can affect consumption?

Ch. 30: Aggregate Demand and Aggregate Supply

7. Competition in quality and in service may be just as effective as price competition in giving buyers more for their money." Do you agree?  Why? Explain why monopolistically competitive firms frequently prefer non-price to price competition.

8. What is aggregate demand (AD) and why is its downward slope the result of the real-balances effect, the interest-rate effect, and the foreign purchases effect?

9. What is aggregate supply (AS) and why does it differ in the immediate short-run, the short-run, and the long-run?

Reference no: EM132612626

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