Business Cycle

Which point on the graph is showing a recession?

• Point A

• Point B

• Point C

• Point D

Depression is a prolonged recession. How many business quarters does it take too officially be in a recession?

• 2 Quarters

• 1 Year

• 3 Quarters

• Recessions are made up.

An Expansion is....

• Low unemployment

• A growing economy

• People losing jobs

• People spending tons of money

• None of the above

(a)   the economy’s relatively short-term movement in and out of recession

The Troughs are the low points in the business cycle graph. The Troughs are when the economy is going through an Expansion period.

• True

• False

Point E is the...

• Recovery

• Recession

• Peak

• Trough

Depression is

• short and minimal decline in the economy

• a growing economy

• especially lengthy and deep decline in output

Recovery has...

• high unemployment

• inflation is beginning to rise

• interest rates are beginning to rise

• Unemployment is lowering

Expansion is when unemployment is (a)  

Business Cycles are

• Natural

• Unnatural

• Do not occur