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Medical Questions
Your Question
i. What terms are used to describe the way a variable moves when economic activity is rising or falling? What terms are used to describe the timing cyclical changes in economic variables?
ii. If you knew that the economy was falling into a recession, what would you expect to happen to production during the next few quarters? To investment? To average labour productivity? To the real wage? To the unemployment rate?
iii. Consumer expenditure on durable goods such as cars and furniture, as well as purchases of new houses, fall much more than expenditure on non-durable goods and services during recessions. Why do you think that is?
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