Business Cycle

Front

Where on the business cycle would you find the lowest level of unemployment?

Back

A

Front

What is one effect high unemployment rates have on the economy?

Back

It causes consumer & business spending to decrease

Front

Low unemployment, an increase in the output of goods and services, and increasing consumer spending best illustrates which of the following periods of the business cycle?

Back

expansion

Front

GDP is the highest in which of the following phases? Trough, Expansion, Peak, Recession

Back

Peak

Front

Inflation is the highest in which of the following phases? Peak, Expansion, Recession, Trough

Back

Peak

Front

The lowest point of output in a recession, before a recovery begins is called

Back

trough

Front

A decline in business & consumer spending results in a decline in GDP

Back

True

Front

High interest rates encourage consumer and business borrowing, spending, and investment

Back

False

Front

When consumers feel better about the economy and their future prospects, they tend to spend more money

Back

True

Front

The value of the output of all final goods and services produced within a country in a year.

Back

Gross Domestic Product