Intro to Business: Business Cycle Review

What are the 3 economic goals of every country in the world?

• promote economic growth

• prevent excessive unemployment

• limit inflation

• measure the GDP

What are the 2 components of the business cycle shown on a business cycle graph.

• GDP

• GDP per capita

• time

• current unemployment rates

How do we usually measure time when we are discussing the business cycle?

• months

• days

• years

• quarters

Which axis on the business cycle graph shows the GDP?

• X

• Y

Which axis on the business cycle graph shows time?

• X

• Y

What do we call it when the economy is growing?

• contraction

• expansion

• peak

• trough

What is the highest point of expansion?

• peak

• trough

• growth trend line

What do we call it when the economy is shrinking?

• expansion

• contraction

• the business cycle

What is the lowest point of contraction?

• peak

• trough

• growth trend line

Recession is another word for which phase of the business cycle?

• expansion

• contraction