Business Cycle/Monetary and Fiscal Policy

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

GDP declines during a(an)

• peak

• contraction

• expansion

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

Which of the following is a peak?

• A

• B

• C

• D

Which of the following is an expansion, or recovery?

• A

• B

• C

• D

Which of the following is a trough?

• A

• B

• C

• D

Which of the following is a recession, or contraction?

• A

• B

• C

• D