How is inflation described during the Slowdown phase?
Explanation
Inflation pressure builds up and accelerates as the economy overheats in the Slowdown phase.
Other questions
Which of the following best describes the periodicity of business cycles?
Business cycles are most typical of which type of economy?
What is the typical duration of a business cycle as mentioned in the text?
Which type of cycle refers to fluctuations in the level of economic activity, such as GDP in volume terms?
In the context of the Growth Cycle, what does it measure economic activity against?
What is a key advantage of the Growth Rate Cycle approach?
Compared to the Classical view, when are peaks generally reached in a Growth Cycle?
Which phase of the business cycle is characterized by the negative output gap starting to narrow?
During the Recovery phase, how do businesses typically handle labor needs?
What happens to the output gap during the Expansion phase?
During which phase does the unemployment rate start to rise?
What is the behavior of inflation during the Contraction phase?
A common definition of a recession mentioned in the text is:
In the Recovery phase, how do asset markets behave?
During the Expansion phase (Boom), what might the central bank do?
What happens to the yields of safe assets like government bonds during the Slowdown phase?
During the Contraction phase, investors prefer which type of assets?
How does the duration of credit cycles generally compare to business cycles?
What is the impact of financial frictions on business cycles?
Recessions accompanied by financial disruptions tend to be:
In the context of economic indicators, how is capital spending described during the Recovery phase?
What happens to the Inventory to Sales Ratio during the Slowdown phase?
Which of the following is considered a 'Leading' economic indicator?
Which of the following is considered a 'Coincident' economic indicator?
Which of the following is considered a 'Lagging' economic indicator?
What does a Diffusion Index primarily measure?
A high value in the Diffusion Index indicates:
Building permits are classified as which type of indicator?
Real personal income is classified as which type of indicator?
The ratio of consumer instalment debt to income is classified as:
During the Expansion phase, how is the activity level described?
In the Slowdown phase, what happens to activity measures?
During which phase do businesses typically first cut hours and eliminate overtime?
What is the behavior of the unemployment rate during the Slowdown phase?
Which phase is described as the 'Boom' phase?
In the 'Classical Cycle' definition, recessions are marked by:
Which cycle definition is closest to how mainstream economists think about business cycles?
Which phase comes immediately after a 'Peak' in the business cycle?
Which phase comes immediately after a 'Trough'?
In the Contraction phase, companies with steady positive cash flows are:
Which phase is characterized by 'Inflation picks up modestly'?
What does the Inventory-to-Sales ratio typically do in the Contraction phase?
Change in unit labor costs is an example of a:
Interest spread (between Long Term and Short Term rates) is a:
In the 'Growth Cycle' definition, what happens to the peaks compared to the Classical view?
Which phase involves 'Positive output gap starts to narrow'?
What serves as a 'leading indicator of the economy' during the Recovery Phase?
In which phase do sales decline slow down?
The Average prime lending rate is a: