4 Phases of the Business Cycle

4 Phases of the Business Cycle

by Paul Downey

Multiple Choice

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

Multiple Choice

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

Multiple Choice

The business cycle rises above the trendline during-

• rescessions

• expansions

• troughs

Multiple Choice

GDP declines during a(an)

• peak

• contraction

• expansion

Multiple Choice

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

Multiple Choice

Which option presents the business cycle in the correct order

• trough, contraction, peak, recovery

• trough, expansion, peak, contraction

• peak, expansion, trough, recovery

• peak, contraction, recovery, trough

Multiple Choice

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

Multiple Choice

The Business Cycle charts...

• the ups and downs of an economy

• series of stages in the economy as it expands and contracts.

• the periodic growth and decline of a nation’s economy, measured mainly by its GDP (Gross Domestic Product).

• All of the above