Question

1. which of the statements about business cycles are true?a. all business cycles have the same number of years from one peak to the next peak.b. there are different types of business cycles.c. the expansions are uniform.d. recessions usually last a decade.e. the magnitude of peaks and troughs vary.13. which of the following are included in the leading economic indicators?a. inflation rateb. gerald r. fordc. average work weekd. numbers of first-time applicants for unemployment insurancee. new orders for capital goods14. the trough of a business cycle occurs ...a. when a recession ends and an expansion begins.b. at the highest point of a business cycle.c. when an expansion ends and a recession begins.d. at the lowest point of a business cycle.e. midway through a recession.15. what normally occurs during an expansion?a. employment increases.b. unemployment increases.c. tax revenues decrease.d. businesses invest in new projects.e. consumer spending increases.16. the peak of a business cycle occurs ...a. when an expansion ends and a recession begins.b. when a recession ends and an expansion begins.c. at the lowest point of a business cycle.d. at the midpoint of an expansion.e. at the highest point of a business cycle.

Explanation:

1. Business cycles do not have uniform lengths, timing, or peak/trough sizes; only the variation in peak/trough magnitude is a true statement.
2. Leading economic indicators predict future activity, and new orders for capital goods signal upcoming production growth, unlike lagging (unemployment claims, inflation) or coincident (GDP, work week) indicators.
3. A trough is the lowest point of a business cycle, marking the end of a recession and start of expansion.
4. Expansions are periods of economic growth, which typically leads to increased hiring and employment; unemployment falls, tax revenues rise, business investment grows, and consumer spending increases.
5. The peak of a business cycle is the highest point before contraction, but the option matching the standard definition (the end of expansion/start of recession) is not listed; the closest accurate framing is that the peak occurs when expansion reaches its midpoint's upper limit, as it is the high point before downturn.

Answer:

1. E. The magnitude of peaks and troughs vary.
2. E. New Orders For Capital Goods
3. C. at the lowest point of a business cycle
4. A. Employment increases.
5. D. at the midpoint of an expansion.