Business Cycle and Macroeconomics

How many phases make up the business cycle?

• 2

• 4

• 6

• 8

Macroeconomics approaches the study of economics from the viewpoints of

• individual firms

• individual consumers

• government units

• the entire economy

GDP is in the process of declining during a(an)

• peak

• contraction

• expansion

• trough

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

• Peak

• Contraction

• Trough

• Expansion

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction

• Trough

• Expansion

Which of the following is an expansion, or recovery?

• A

• B

• C

• D

If GDP falls for at least two quarters, it is considered what stage of the business cycle?

• Expansion

• Recession

• Prosperity

• Recovery

At what point in the business cycle is GDP the highest?

• Peak

• Expansion

• Recovery

• Trough

This is the term for the total amount of all goods and services in the economy that households, businesses, and government will buy at each level of prices?

• Aggregate Equilibrium

• Aggregate Demand

• Aggravated Surplus

• Aggregate Supply

In which direction will both aggregate demand and aggregate supply curves shift if there is an increase respectively?

• Left

• Right