2-2 Economic Conditions Change

Front

The four phases of the business cycle are: Expansion, Peak, Contraction, Trough

Back

Expansion, Peak, Contraction, Trough

Front

Causes of inflation and deflation include: Increase in money supply and decrease in demand, respectively.

Back

Increase in money supply and decrease in demand.

Front

The importance of interest rates is:

Back

They influence borrowing, saving, and investment decisions.

Front

What is the Business Cycle?

Back

The movement of the economy from one condition to another and back again.

Front

Business Cycles are the recurring ups and downs of ________.

Back

GDP

Front

Which of the following is NOT a component of GDP?
Consumer spending for food, clothing, housing
Business spending for buildings, equipment, and inventory
Government spending to pay employees and to buy supplies and other goods and services
Imports more than Exports

Back

Imports more than Exports

Front

Only Final Products are included in GDP.

Back

True

Front

The four phases of the Business Cycle are: Expansion, Peak, Contraction, Trough

Back

Expansion, Peak, Contraction, Trough

Front

During which phase of the Business Cycle does unemployment begin to decrease and GDP begins to rise again? Options: Prosperity (Peak), Recession (Contraction), Depression (Trough), Recovery (Expansion)

Back

Recovery (Expansion)

Front

What is inflation?

Back

An increase in the general level of prices.