2.7 Business Cycles

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

GDP declines during a(an)

• peak

• contraction

• expansion

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

GDP will begin to decline at-

• the peak.

• the trough.

• the contractionary phase.

Which of the following is a peak?

• A

• B

• C

• D

Which of the following is a recession, or contraction?

• A

• B

• C

• D

Which of the following is an expansion, or recovery?

• 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

Which of the following is associated with peaks in the business cycle?

• Relatively high levels of unemployment

• Relatively low levels of unemployment

• Recessions

• Both High Unemployment and Recession

Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle?

• Expansion

• Recovery

• Prosperity

• Recession