Business Cycle Quiz

What is the business cycle?

• Fluctuation in the economy in terms of output and growth

• Long-term upward growth trend

• Declining GDP

• Lowest point in a declining growth rate

What are the phases of the business cycle?

• Peak, downturn, recession, trough, expansion

• Expansion, recession, trough, peak

• Recession, expansion, peak, downturn

• Trough, peak, expansion, downturn

What characterizes an expansion in the business cycle?

• Economic growth, business and consumer confidence, increased spending and employment

• Declining GDP, falling prices and investment, rising unemployment

• Maximum allowed output, falling demand, overheating economy

• Intervention from the government, monetary or fiscal policy

What triggers a recession in the business cycle?

• Financial crisis, falling consumer confidence, declining aggregate demand

• Economic growth, increased spending and employment, rising prices

• Intervention from the government, monetary or fiscal policy

• Maximum allowed output, falling demand, overheating economy

What is a trough in the business cycle?

• The lowest point in a declining growth rate

• Fluctuation in the economy in terms of output and growth

• Long-term upward growth trend

• Declining GDP

What is required to restore confidence and re-enter an expansion in the business cycle?

• Intervention from the government, monetary or fiscal policy

• Economic growth, business and consumer confidence, increased spending and employment

• Financial crisis, falling consumer confidence, declining aggregate demand

• Maximum allowed output, falling demand, overheating economy