The Business Cycle

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

The Business Cycle charts...

• the ups and downs of an economy

• series of stages in the economy as it expands and contracts.

• the periodic growth and decline of a nation’s economy, measured mainly by its GDP (Gross Domestic Product).

• All of the above

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

The business cycle rises above the trendline during-

• recessions

• 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

When GDP rises faster than the long-run trend the economy is experiencing-

• recession

• expansion

• recovery

GDP will begin to decline at-

• the peak.

• the trough.

• the contractionary phase.