GDP Business Cycles

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

The business cycle rises during _____________

• rescessions

• expansions

• troughs

GDP declines during a(an)

• peak

• contraction

• expansion

Economic recovery (expansion) begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

What follows the "peak" of a business cycle?

• recession

• an expansion

• the trough

When GDP rises faster than the long-run trend the economy is experiencing-

• recession

• expansion

• recovery

GDP will begin to decline at-

• the peak.

• the trough.

• the contractionary phase.

When contraction (recession) begins in a business cycle- the economy will experience

• higher unemployment

• less consumer spending

• both a & b

Aggregate is another word for ______.

• Aggravate

• Total

• Supply

• Demand