Inflation & Business Cycle

What is happening to GDP during the expansionary phase?

• Increasing

• Decreasing

• Highest

• Lowest

What is happening to Inflation during the peak phase?

• Increasing

• Decreasing

• Highest

• Lowest

What is happening to Unemployment during the contractionary phase?

• Increasing

• Decreasing

• Highest

• Lowest

What is happening to GDP during the trough phase?

• Increasing

• Decreasing

• Highest

• Lowest

What is happening to Unemployment during the peak phase?

• Increasing

• Decreasing

• Highest

• Lowest

What is the correct order for the business cycle?

• Expansion, Peak, Contraction, Trough

• Expansion, Contraction, Peak, Trough

• Expansion, Trough, Contraction, Peak

• Expansion, Peak, Trough, Contraction

Which cause of inflation suggests that there is too much money in circulation in the money supply?

• Quantity Theory

• Cost-Push Theory

• Demand-Pull Theory

• Demand-Push Theory

Which cause of inflation suggests that the increasing costs of inputs forces businesses to increase their prices?

• Quantity Theory

• Cost-Push Theory

• Demand-Pull Theory

• Demand-Push Theory

Which cause of inflation suggests that people wanting more goods and services than are available will increase prices?

• Quantity Theory

• Cost-Push Theory

• Demand-Pull Theory

• Demand-Push Theory

Which group of people will benefit from unanticipated inflation?

• Borrowers

• Savers

• Lenders

• Fixed Income