Business Cycles and Economic Indicators

Business cycle has four phases:

• expansion, peak, contraction, trough

• peak, expansion, concept, decline

• contraction, peak, expansion, uprise

• trough, peak, decline, uprise

What is happening to the economy in a period of economic contraction?

• GDP is rising and unemployment is falling.
• GDP is rising and unemployment is rising.
• GDP is falling and unemployment is rising.
• GDP is falling and unemployment is falling.

When the economy experiences an expansion, it is most likely the case that

• GDP is increasing, unemployment is increasing, and inflation is decreasing

• GDP is decreasing, unemployment is decreasing, and inflation is increasing.

• GDP is increasing, unemployment is decreasing, and inflation is increasing

• GDP is decreasing, unemployment is decreasing, and inflation is decreasing.

GDP is an important economic measurement because it

• provides valuable data on unemployment rates.

• provides valuable data on inflation rates.

• measures the value of final goods and services produced by a country.

• measures only the exports of a country

Which term describes the phases of expansion and contraction in an economy over time?

• Recessions

• Prosperity

• Total product oscillations

• Business cycles

"Prices for consumer goods down 5% this year!" This headline affects which economic indicator the most?

• Unemployment

• Consumer Price Index

• Productivity

• Gross Domestic Product (GDP)

"Business investment in capital goods (machinery for production) rises." The headline above affects which economic indicator the most?

• Unemployment

• Consumer Price Index

• Inflation

• Gross Domestic Product (GDP)

"Dunder Mifflin Corporation Fires 5,000 Employees" This headline affects which economic indicator the most?

• Consumer Price Index

• Consumer Spending

• Unemployment rates

• Inflation

The period between the peak and the trough is the _____; the period between the trough and the peak is the _____.

• contraction; expansion

• contraction; recession

• peak; trough
• trough; peak

Which of the following connects with letter A

• Peak

• Trough

• Contraction

• Expansion