The Business Cycle (EPF 5.04)

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

Which of the following is NOT a Phase?

• Expansion

• Contraction

• Neutral

• Peak

• Trough

The business cycle rises above the trendline during-

• rescessions

• expansions

• troughs

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

When GDP rises faster than the long-run trend the economy is experiencing-

• recession

• expansion

• recovery

GDP will begin to decline at-

• the peak.

• the trough.

• the contractionary phase.

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