Business Cycles

The Lowest point in the business cycle

• Peak
• Trough
• Expansion
• Contraction

The HIGHEST Point in business cycle

• Peak
• Trough
• Contraction
• Recession

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

• Prosperity
• Recession
• Depression
• Recovery

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

• trade deficit
• depression
• trough
• recovery

When a recession is predicted in an economy which of the following occurs?

• businesses decrease investment
• consumers increase spending
• businesses increasing hiring
• businesses increase investment

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

This economic model is called:

• The business cycle

• Supply & demand

• Production Possibilities Curve

• Circular Flow Model

Point 3 represents

• Trough

• Expansion

• Peak

• Depression