Business Cycle

Which of the following is a slump?

• A

• B

• C

• D

Which of the following is a boom?

• A

• B

• C

• D

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

Which of the following is NOT a recovery's characteristic?

• Consumers begin to increase spending

• rapidly rising unemployment

• Business feel a little more confident and start to invest again

• Consumers begin to increase spending

An economy is officially considered to be in recession after two consecutive (continuous) quarters of falling GDP.

• True

• False

Which of the following characteristics of the business cycle that describing the boom phase?

• High levels of consumer spending, business confidence, profits and investment

• Space capacity increases + rising unemployment.

• low unemployment

• Business feel a little more confident and start to invest again

Which of the following characteristics of the business cycle that describing the slump phase?

• Very weak consumer spending and business investment

• Fallings levels of consumer spending

• Consumers begin to increase spending

• Rapidly rising unemployement

The more money people invest in businesses, 

the more money businesses have to grow. Therefore, investment affects the business cycle.

• TRUE

• FALSE

If GDP of a country is decreasing, this can indicate that overall spending on goods and services will decrease for businesses.

• TRUE

• FALSE

If sales rise, businesses may reduce the workforce to help reduce their overall costs.

• TRUE

• FALSE