Business Cycle Quiz

Which of the following factors is likely to increase non-material living standards in Australia

• A reduction in literacy rates

• A reduction in rates of mental illness

• An acceleration of carbon emissions

• An increase in crime rates

Which of the following are factors likely to occur in a peak in the business cycle

• High inflation, a trade deficit and budget deficit

• High inflation, a trade surplus and budget surplus

• High inflation, a trade deficit and budget surplus

• Low inflation, a trade surplus and budget deficit

Which of the following best indicates an improvement in non material living standards?

• An increase in real GDP per capita

• A decrease in disposable income

• A fall in crime rates

• A fall in literacy rates

Which of the following stages of the business cycle are living standards maximised?

• Peak

• Trough

• Domestic Economic Stability

• Boom

If Australia was initially in a period of domestic economic stability and the government decided to raise income taxes this is most likely to result in

 

• An increase in expenditure

• An increased level of production in the economy

• An increase in the rate of inflation in Australia

• A slowdown in economic activity perhaps leading to a trough

Which of the following has an effect on Australia’s living standards that is different to the other three?

• The successful implementation of anti-terrorism measures by the government

• An increase in CO2 emissions combined with more natural disasters

• Population growth rising faster than growth in real GDP

• A very uneven distribution of income

Which of the following is likely to occur as a result of increased consumer confidence in the economy?

• A decrease in the level of household consumption spending

• An increase in the unemployment rate

• A decrease in the level of savings

• A decrase in aggregate demand

1Which of the following best defines Stagflation?

• High inflation and high economic growth

• Low inflation and low economic growth

• High inflation and low economic growth

• Low inflation and high economic growth

Match the following to the correct phase of the business cycle

• High unemployment

• Trough

• Rising wages

• Contraction

• High inflation

• Expansion

• Falling consumer confidence

• Peak

• Growth of 3-4%

• Domestic Economic Stability