Business Cycle

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

• trade deficit
• depression
• trough
• recovery

All of the following are points on the business cycle EXCEPT

• Peaks
• Troughs
• Expansion
• GDP

Which letter represents the Peak Phase?

• A
• B
• C
• D

Which letter represents the Trough Phase?

• A
• B
• C
• D

Which letter represents the Expansion Phase?

• A
• B
• C
• D

Where on the business cycle would you find the highest unemployment?

• A
• B
• C
• D

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

• A
• B
• C
• D

An economic contraction is synonymous with 

• economic growth
• a recession
• full employment
• a peak

What is the formula for GDP?

• C + I + G + (X-M)
• C + I + G / (X-M)
• C + I + G + (population)
• C + I + G + (M-X)

Which phase of the Business Cycle includes the economy slowing down?

• Prosperity
• Recession
• Depression
• Recovery