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ECN 211 ASU Exam 3 2025 Questions and Answers Recession - ....ANSWER ...--a period of mildly falling incomes and rising unemployment ex. 2007-2009 -caused by a leftward shift in aggregate demand and a leftward shift in aggregate supply Depression - ....ANSWER ...-a severe period of falling incomes and rising unemployment ex. Great Depression The Business Cycle - ....ANSWER Economic Fluctuations - ....ANSWER ...-the short-run fluctuations of the economy ...--are irregular and unpredictable -most macroeconomic variables measuring income, spending, or production move in the same direction When Output Falls, Unemployment Rises - ....ANSWER ...-when real GDP declines the rate of unemployment rises because when firms produce fewer goods and services, they lay off workers Classical Dichotomy - ....ANSWER ...--the separation of economic variables into real and nominal -monetary neutrality is the property that changes money supply and only affects nominal variables, not real variables …FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1