The Business Cycle

The illustration depicts

• the life cycle

• the business cycle

• my mood swings

• wave theory

GDP, or gross domestic product, measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

When GDP increases, the business cycle

• expands

• peaks

• contracts

• troughs

When GDP drops, the business cycle

• expands

• peaks

• contracts

• troughs

Which of the following is a recession, or contraction?

• A

• B

• C

• D

Which of the following is a peak?

• A

• B

• C

• D

Which of the following is a trough?

• A

• B

• C

• D

Which of the following is an expansion, or recovery?

• A

• B

• C

• D

Which letter represents the Contractionary (Recession) Phase?

• A
• B
• C
• D

Which term describes the phases of expansion and contraction in an economy over time?

• Recessions

• Prosperity

• Total product oscillations

• Business cycles