Business cycle review

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.

The business cycle rises above the trendline during-

• rescessions

• expansions

• troughs

GDP declines during a(an)

• peak

• contraction

• expansion

Rapid increase in sales, cash flow problems, competitors attracted to the market is characteristic of which stage of the business life cycle?

• Start-up

• Growth

• Maturity

• Post-maturity

• Seed

When unemployment is increasing and production is decreasing a country's economy is heading into a ___________

• Recession

• Expansion

• Development

• Peak

When an economy is in a recession and moving toward a trough it is said to be which of the following

• Contraction

• Expansion

• Peak

• Trend

In the business cycle, at what point is unemployment at its lowest and productivity at its highest?

• Trough

• Peak

• Expansion

• Recession

In the business cycle, at what point is unemployment at its highest and productivity at its lowest?

• Trough

• Peak

• Expansion

• Recession

What is happening to GDP during the trough phase?

• Increasing

• Decreasing

• Highest

• Lowest