can be best defined a.j the peviod of prosperity of the business cycle b J the g

Question

can be best defined a.j the peviod of prosperity of the business cycle b J the general atsempt to expand production and c) at least two consecutlive quarters of growth in d) all of the immediately atbove of al prices to rise 31 A splacement in the Minsky model of a general financial crisis financial crisis is cently large and pervasive enough to and proft opportunities in at least one /a shock or innovation that is b) a factor that would lead business firms and individuals to borrow in order C) a factor which would hasten (or quicken) economic growth which, in mprove the economic outlook take advantage of the increase in the anticipated profits in the perhaps would generate a feedback of even greater optmism (or sector tum, d) ail of the above 32 Economist Gottfried Haberler first formulated the: imiting notion that an increasing supply of money and credit is b) limiting notion that an increasing supply of money and credit is sufficient c) idea that the occuence of the business cycle is part of the natural order of d.) idea that a financial crisis eventually follows the occurrence of a credit necessary for the occurrence of a long-run boom in the business cycle for the occurrence of a long-run boom in the business cycle things in the universe It is like day and night and the air we breathe bubble in today's moden economy of universal banks, shadow banks and other mega-financial entities In the Philadelphia Federal Reserve journal article, From Cycles to Shocks: Progress in Business-Cycle Theory, the author and economist Satyajit Chatterjee asserts that: 33. a)modern theories of the business cycles attribute cyclical fluctuations to the cumulative effects of shocks and disturbances that continually buffet the b.) each phase of the economy carries within it the seed that generates the next cyclical phase. For example, a boom generates the next recession and the recession generates the next boom c.) the business cycle is part of the natural order of the universe. d.) the business cycle is but a passing (yet extensive) phase in the evolution of commercial and industrial activity. 34. If shocks and disturbances cannot be eliminated, then: a market economy cannot deliver stable economic performance on a sustainable basis a.) b.) it may be in the long-run interests of society to adapt to the shocks. To the extent countercyclical policies interfere with the necessary adaptations, they may do more harm than good. Accordingly, there is not a particular policy stance in response to cyclical fluctuations in real business cycle theory c.) aggressive countercyclical policies or institutional reforms are seen as the appropriate response to cyclical fluctuations. d) drastic structural change is called for in order to change underlying realities

Explanation / Answer

30.

The business cycle is the cyclic alteration of increase and decrease in the economic activity. There are four phases of business cycle: the peak, recession, the trough and recovery. The four phases of business cycle are as follows:

Therefore, the correct option is: c) at least two consecutive growth in GDP for two quarters

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