5_The Business Cycle

Front

The Business Cycle measures ___ over time.

Back

economic growth

Front

A trend line will show-

Back

an increase in Real GDP over time.

Front

The business cycle is made up of how many phases?

Back

4

Front

The business cycle rises above the trendline during-

Back

expansions

Front

GDP declines during a(an)

Back

contraction

Front

A "boom" period is economic growth-

Back

above the trend line

Front

Economic recovery begins-

Back

at the end of a recession (trough)

Front

When GDP rises faster than the long-run trend the economy is experiencing-

Back

expansion

Front

GDP will begin to decline at-

Back

the peak.

Front

Which of the following can lead to a "bust" in the business cycle? high inflation, scarcity of resources, both a & b

Back

both a & b