A recession is a significant decline in economic activity, lasting more than a few quarters. There is a drop in the following five economic indicators: real GDP, income, employment, manufacturing, and retail sales. However, usually a negative GDP growth rate for 2 consecutive quarters is considered as recession. To counter a recession expansionary monetary and fiscal policy should be used. E xpansionary monetary policy will increase the money supply and reduce interest rates. This will reduce cost of borrowing and encourage business investment. Fiscal policy should also be expansionary. When the country is in a recession , the government will increase spending, reduce taxes, or do both to expand the economy.
If two or more than two goods are used to satisfy the same want, they are called
Which statement is correct regarding the situation of Inflation in an Economy?
The range of the correlation coefficient is?
Coefficient of elasticity of demand is negative. It means:
The term ‘Gross’ is being used for Gross Domestic Product (GDP) because its computation does NOT exclude which of the following factors?
Income effect states that as price of a good falls, demand rises since there is rise in
Price elasticity of demand of a horizontal demand curve is called:
An inferior good is one for which an increase in income causes a(n)
When a price ceiling is imposed in a market,
Which of the following will have the largest value while calculating national income?
