11 The economy is in an expansion when it is

A.

at its trough.

B.

moving from a trough to a peak.

C.

at its peak.

D.

moving from a peak to a trough.

12 A shock that increases the costs of production is a

A.

positive aggregate supply shock.

B.

negative aggregate supply shock.

C.

negative aggregate demand shock.

D.

positive aggregate demand shock.

13 Keynesian economics refers to the perspective that the business cycle represents

A.

equilibrium.

B.

longrun macroeconomic fluctuations.

C.

disequilibrium.

D.

shortrun macroeconomic stability.