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QUIZ 2: Macro – Winter 2002 - The University of Chicago Booth
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... c. Shift both the Money Demand (MD) and Money Supply (MS) curves to the right. Question 2 (1 point each – 5 points total) Circle all true answers to the following statement. Assume that the income effects on labor supply (NS) are large relative to the substitution effects on labor supply. A fall in ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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