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