Chapter 5

3. It indicates the quantity of goods and services that companies, households and the government are prepared to purchase at different prices
5. this phase is a phase of hope
8. a change frequently in size, amount quality.. especially from one extreme to another
9. this cyclical model examines the correlation between electoral and economic cycles
10. This is the reason for the tendency of impulses to acquire their own momentum
11. KOF barometer is a ...indicator
13. this theory states that changes in demand trigger disproportionate changes in investment
14. this theory states that changes in the demand trigger disproportionate changes in income and employment
17. consumption is a ...indicator
18. slowdown
19. as a result of high prices the demand will ...at the end of a boom
20. unemployment rate is a ...indicator

1. this cyclical theory regards the change in the money supply as the cause of cyclic fluctuations
2. it indicates how many goods and services could be produced as a maximum if all the available production factors were used to full capacity.
3. it records the relationship of the overall quantity of goods supplied at a certain price level
4. a deep valley of economic activities
6. a decrease in GDP during at least two consecutive quarters
7. Investment creates capacity which contributes to production potential
12. During the production of capacity income is created that is converted into demand
15. this cyclical theory identifies the alternating waves of pessimism and optimism as the cause of cyclical fluctuations
16. opposite of a slump