Block 6 Business Cycle Quiz--12/13/18

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

• trade deficit
• depression
• trough
• recovery

Which letter represents the Contractionary (Recession) Phase?

• A
• B
• C
• D

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

• A
• B
• C
• D

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

• Expansion
• Recession
• Depression
• Recovery

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?

• expansion
• recession
• trough
• peak

All of the following are points on the business cycle EXCEPT

• Peaks
• Troughs
• Expansion
• GDP

The business cycle describes the fact that

• unemployment levels are constantly changing
• an economy's level of output fluctuates between times of recession and expansion.
• inflation rates are constantly changing.
• politicians usually pass laws that cause the economy to react in unpredictable ways.

Investment is at its lowest point

• Expansion
• Peak
• Contraction
• Trough

Wages are highest

• Expansion
• Peak
• Contraction
• Trough

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

• A
• B
• C
• D