Business Cycle Quiz

What are the four phases of the business cycle?

• Expansion, peak, contraction, and trough.

• Rise, climax, fall, and bottom.

• Upswing, climax, downturn, and bottom.

• Growth, climax, decline, and bottom.

Which phase of the business cycle is characterized by high economic growth and increased consumer spending?

• Depression

• Expansion

• Recession

• Stagnation

During which phase of the business cycle does the economy experience a decline in economic activity?

• recession

• growth

• boom

• expansion

What are the causes of the business cycle?

• Alterations in labor market conditions, modifications in fiscal policies, and shifts in business confidence.

• Multiple factors including changes in consumer spending, investment levels, government policies, and external shocks.

• Shifts in global trade, changes in interest rates, and variations in inflation levels.

• Changes in technological advancements, fluctuations in exchange rates, and natural disasters.

Which factor is responsible for the expansion phase of the business cycle?

• Consumer spending and business investment

• Technological advancements

• Government regulation

• International trade

What is the term used to describe the period of time between the end of a recession and the beginning of an expansion?

• stagnation

• depression

• boom

• recovery

Which phase of the business cycle is characterized by a decrease in economic activity and rising unemployment?

• peak

• expansion

• boom

• recession

What is the term used to describe the peak of the business cycle?

• boom

• downturn

• depression

• recession

Which factor is responsible for the contraction phase of the business cycle?

• Decrease in economic activity

• Government intervention

• Stable economic conditions

• Increase in economic activity

What is the term used to describe the trough of the business cycle?

• recession

• boom

• depression

• expansion