7.2 - 7.4 Business Cycles & Unemployment

What happens to the GDP during the expansionary phase?

• Increasing

• Decreasing

• Highest

• Lowest

What happens to inflation during the peak phase?

• Increasing

• Decreasing

• Highest

• Lowest

What happens to the unemployment rate during the contractionary phase?

• Increasing

• Decreasing

• Highest

• Lowest

What happens to the GDP during the trough phase?

• Increasing

• Decreasing

• Highest

• Lowest

What happens to the unemployment rate during the peak phase?

• Increasing

• Decreasing

• Highest

• Lowest

What is the correct order for the business cycle?

• Expansion, Peak, Contraction, Trough

• Expansion, Contraction, Peak, Trough

• Expansion, Trough, Contraction, Peak

• Expansion, Peak, Trough, Contraction

Which option is considered to be an economic goal for a country?

• Increasing poverty
• Decreasing GDP
• Reducing inflation
• Increasing employment

What type of unemployment is due to a business shutting down for a part of a year?

• Frictional

• Structural

• Seasonal

• Cyclical

What type of unemployment occurs when advanced technology takes your job?

• Frictional

• Structural

• Seasonal

• Cyclical

What type of unemployment occurs during a transition period from one job to another job?

• Frictional

• Structural

• Seasonal

• Cyclical