Business Cycle Quiz

What are the four phases of the business cycle?

• Upswing, climax, downturn, and bottom.

• Expansion, peak, contraction, and trough.

• Growth, climax, decline, and bottom.

• Increase, climax, decrease, and bottom.

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

• Contraction

• Recession

• Stagnation

• Expansion

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

• boom

• expansion

• recession

• peak

What is the term used to describe the lowest point of the business cycle?

• depression

• boom

• peak

• recession

Which phase of the business cycle is characterized by high unemployment rates and decreased consumer spending?

• Recession

• Expansion

• Peak

• Depression

What is the term used to describe the highest point of the business cycle?

• growth

• recession

• trough

• peak

During which phase of the business cycle does the economy experience a period of recovery and growth?

• Expansion

• Contraction

• Recession

• Stagnation

What factors can cause fluctuations in the business cycle?

• Changes in consumer spending, investment levels, government policies, interest rates, and global economic conditions.

• Changes in labor market conditions, inflation rates, and business regulations.

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

• Changes in population growth, stock market performance, and business competition.

Which phase of the business cycle is characterized by stable economic growth and low unemployment rates?

• Stagnation

• Depression

• Recession

• Expansion

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

• economic expansion

• economic stagnation

• economic downturn

• economic contraction