Q3W1L2_National Income Statistic & The Business Cycle

Read the following headline and choose the condition that correspond with the business cycle.

The price of bread has increased 5% over the past three months.

• Peak

• Contractionary

• Trough

• Growth

Read the following headline and choose the condition that correspond with the business cycle.

Interest rates at a low of 2% cause consumers to take out loans and buy homes.

• Peak

• Contractionary

• Trough

• Growth

Read the following headline and choose the condition that correspond with the business cycle.

The sale of durable goods is down for the 5th consecutive month.

• Peak

• Contractionary

• Trough

• Growth

Read the following headline and choose the condition that correspond with the business cycle.

Due to factory closures unemployment has risen to a five year high of 10%

• Peak

• Contractionary

• Trough

• Growth

Read the following headline and choose the condition that correspond with the business cycle.

Due to increased consumer spending, the Federal Reserve raises interest rates to slow the economy down.

• Peak

• Contractionary

• Trough

• Growth

Read the following headline and choose the condition that correspond with the business cycle.

The DOW Jones industrial average reaches an all-time high.

• Peak

• Contractionary

• Trough

• Growth

Read the following headline and choose the condition that correspond with the business cycle.

GDP declines for four consecutive months, causing the Federal Reserve to lower interest rates.

• Peak

• Contractionary

• Trough

• Growth

Read the following headline and choose the condition that correspond with the business cycle.

The unemployment rate is at 3.4%, a new 15 year low.

• Peak

• Contractionary

• Trough

• Growth