Read a passage from a speech given by President Barack Obama. Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit . . . And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits. -President Barack Obama,February 4, 2009 Which statement best explains this passage?
answer
It describes government measures to stimulate demand and bring about a recovery.
question
Which of the following is a characteristic of the prosperity phase of the business cycle
answer
high levels of production
question
Which best describes how a recession develops as demand and production decrease?
answer
The recession feeds on itself.
question
During a recession, what is one way governments try to encourage growth?
answer
by increasing unemployment benefits
question
The graphs show the US unemployment rate and the price of whole milk between 2006 and 2012. What do these graphs indicate about the relationship between employment levels and prices during economic cycles?
answer
As unemployment rates rise, average prices fall.
question
There are four stages in an economic recovery. 1. increased production 2. rising demand (occurs twice) 3. increased hiring In which order do these stages occur?
answer
2, 1, 3, 2
question
Which indicators do economists use to determine the state of the economy? Check all that apply.
