Microeconomics studies economic activity from the perspective of Product markets The labor market The economy as a whole The retail industry The simple circular flow diagram illustrates that Production generates income so that income and production are the same The economy's income exceeds its income None of the above are necessary correct Business cycles are Similar to fashion cycles in the garment industry Recurring periods of cost cutting by business enterprises Recurring episodes of increases and decreases in economic activity Large swings in budget deficits Which phase of the business cycle follows immediately after a trough? The peak The recession the expansion The saddle GDP is computed using market prices as value of final goods and services because Market prices don't change much, so it is easy to make comparisons between years If market prices are out of line with how people value goods the government sets callings and floors on them Market prices reflect the value of goods and services None of the above are correct; the government does not use market prices to compute GDP Over the last few decades Americans have chosen to cook less at home and eat more at restaurants. This changes in behaviour, by itself In creased measured GDP Reduced measured GDP Did not affect measured GDP Affected measured GDP only to the extent that people eat more at restaurants than at home Which of the following equations best describes the expenditure approach to calculated GDP GDP = C + I GDP = C + I + G + (X - m) GDP = C + I + G Gross domestic product (GDP) refers only to output product by Firms in which U .S. citizens own a majority share Resources located within the united states Resources supplied by U.S. residents Corporations that trade on U.S. stock exchanges