The Business Cycle

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

A trend line will show-

• an increase in Real GDP over time.

• only economic recessions.

• only economic expansions.

Which of the following is not a macroeconomic goal?

• low unemployment

• rise in the minimum wage

• price level stability

The trend line is not a

• business cycle.

• macroeconomic goal.

• both a & b.

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

The business cycle rises above the trendline during-

• rescessions

• expansions

• troughs

GDP declines during a(an)

• peak

• contraction

• expansion

A "boom" period is economic growth-

• below the trend line

• at the peak

• above the trend line

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

What follows the "peak" of a business cycle?

• recession

• a "bust"

• the trough