Biz Cycle

The business cycle directly measures which economic goal?

• full employment

• growth

• price stability

Which option presents the business cycle in the correct order

• trough, contraction, peak, recovery

• trough, expansion, peak, contraction

• peak, expansion, trough, recovery

• peak, contraction, recovery, trough

The straight line overlaid on the business cycle represents the economy's full employment level.

• False

• True

If a news headline says, "Finally!!! 3 straight months of increased jobs and positive consumer confidence,"

which period on the business cycle is being reference?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "After 6 straight years of growth, is the economy at a TURNING POINT?"

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 negatively impacting consumer confidence,"

what period on the business cycle is being referenced?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

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

• a recession

• an expansion

• a recovery

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

Which of the following is NOT a Phase?

• Expansion

• Contraction

• Neutral

• Peak

• Trough

When the economy experiences an expansion, it is most likely the case that

• GDP is increasing, unemployment is increasing, and inflation is decreasing

• GDP is decreasing, unemployment is decreasing, and inflation is increasing.

• GDP is increasing, unemployment is decreasing, and inflation is increasing

• GDP is decreasing, unemployment is decreasing, and inflation is decreasing.