Konjunktur Quiz

What is a business cycle?

• Shifts in political power

• Variations in population growth

• Changes in weather patterns

• Fluctuations in economic activity

Name the four phases of a business cycle.

• Growth, climax, decline, and bottom

• Increase, summit, decrease, and bottom

• Upswing, pinnacle, downturn, and bottom

• Expansion, peak, contraction, and trough

What is inflation?

• The rate at which the general level of prices for goods and services is falling

• The rate at which the general level of prices for goods and services is staying constant

• The rate at which the general level of prices for goods and services is rising

• The rate at which the general level of prices for goods and services is irrelevant

What are the causes of inflation?

• Increased money supply, deflationary expectations, demand-pull deflation, and cost-push deflation.

• Decreased money supply, demand-pull deflation, cost-push deflation, and deflation expectations.

• Excessive money supply, demand-pull inflation, cost-push inflation, and inflation expectations.

• Decreased money supply, deflationary expectations, demand-pull deflation, and cost-push deflation.

What is fiscal policy?

• Government spending and taxation to control the weather.

• Government spending and taxation to improve healthcare.

• Government spending and taxation to promote international trade.

• Government spending and taxation to influence the economy.

What are the tools of fiscal policy?

• monetary policy and exchange rates

• interest rates and inflation

• public debt and budget deficit

• government spending and taxation

How does expansionary fiscal policy affect the economy?

• Expansionary fiscal policy causes inflation.

• Expansionary fiscal policy leads to economic recession.

• Expansionary fiscal policy stimulates economic growth.

• Expansionary fiscal policy has no effect on the economy.

How does contractionary fiscal policy affect the economy?

What is the difference between monetary policy and fiscal policy?

• Monetary policy focuses on the money supply and interest rates, while fiscal policy focuses on taxation and government spending.

• Monetary policy focuses on government spending and taxation, while fiscal policy focuses on the money supply and interest rates.

• Monetary policy and fiscal policy are the same thing.

• Monetary policy focuses on long-term economic goals, while fiscal policy focuses on short-term economic goals.

How does inflation impact the effectiveness of fiscal policy?