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 business cycle rises above the trendline during-

• rescessions

• expansions

• troughs

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

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.

Inflation measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

Unemployment measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers