Business Cycle

High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of —

• recession

• stagflation

• expansion

• investment

An expansionary period in the business cycle is distinguished by —

• high inflation

• declining sales

• fewer excise taxes

• low unemployment

Economic growth would most likely result from —

• decreased trade

• increased productivity

• increased employment

• decreased sales of stock

If businesses can decrease the amount of labor needed to increase inventories, the result will most likely be —

• increased taxes

• economic growth

• increased inflation

• decreased productivity

How does the introduction of new manufacturing technologies generally affect economic growth?

• It creates growth by creating safer work environments.

• It creates growth by increasing the productivity of labor.

• It restricts growth because workers have to learn the new technology.

• It restricts growth because of the additional expense of the new technology.