Common stock is a claim on ALL of a corporation's income and assets
False
Stock is bought and sold on a stock exchange such as the NYSE
True
An output gap is the difference between a country's actual output and its potential output
True
A bull market occurs when stock values increase by at least 20 percent over time
True
Unemployment, although costly for individuals, is not costly for the economy as a whole
False
It is possible that wages could be cut during a time of recession
True
When total demand outpaces actual output in the economy, the economy usually enters a(n)
expansion
A _________________ is characterized by decreased investor confidence and falling stock values
bear market
Economists believe that the Great Depression began when the stock market crashed on October 28 and 29
1929
When the economy produces an amount greater than the total demand, it is possible that a reduction of average prices, known as _________________, may occur
deflation