Question

1. The business cycle consists of__________stages.

2. A deep, prolonged period of recession can become a__________ characterized by an extremely___________unemployment rate.
3. Throughout most of the 1990s, the United States' economy was in the__________stage of the business cycle.
4. Up until the early part of the 2000s, Japan's economy experienced an extended period of___________ .
5. Unemployment normally___________during a period of economic prosperity.
6. During a recession, consumers' buying power normally___________ .
7. Consumers' attitudes towards prices will vary depending on the state of the macroeconomic environment. For example, during a recession, consumers tend to be___________price conscious. On the other hand, during a period of prosperity, consumers tend to be_________price conscious.

A. Five
B. Recovery,low
C. Contraction
D. Inflation.
E. Increases
F. Increases
G. Price, More

Answer 1

The business cycle consists of four stages: expansion, peak, contraction, and trough. A deep, prolonged recession can become a depression characterized by an extremely high unemployment rate. Consumers' attitudes towards prices vary depending on the state of the macroeconomic environment.

Step-by-step explanation:

1. The business cycle consists of four stages: expansion, peak, contraction, and trough.

2. A deep, prolonged period of recession can become a depression characterized by an extremely high unemployment rate.

3. Throughout most of the 1990s, the United States' economy was in the expansion stage of the business cycle.

4. Up until the early part of the 2000s, Japan's economy experienced an extended period of contraction.

5. Unemployment normally decreases during a period of economic prosperity.

6. During a recession, consumers' buying power normally decreases.

7. Consumers' attitudes towards prices will vary according to the state of the macroeconomic environment.

For example, at the time of a recession, consumers are more price conscious. On the other hand, during a period of prosperity, consumers tend to be less price conscious.