Business Cycle and Economics Growth

What is the business cycle?

• The expansion and contraction of an economy over time

• The fluctuation of interest rates in the stock market

• The rise and fall of consumer spending

• The increase and decrease of government debt

Which of the following is not a phase of the Business Cycle?

• Boom/Peak

• Upswing/Expansion

• Pit/Trench

• Downswing/Contraction

The Business Cycle is an economic model modelling which economic indicator?

• Economic Growth

• Living Standards

• Inflation Rate

• Unemployment Rate

Which of the following IS a characteristic of the Boom/Peak phase of the Business Cycle?

• Rising Unemployment

• Decreasing Inflation

• Low Demand

• Full Employment

What is GDP per capita?

• GDP divided by the number of businesses

• The GDP of a nation

• GDP divided by the population

• The GDP accounting for inflation

During an economic contraction, we would expect the quality of life of a nation to:

• Increase

• Decrease

• Stay the same

• What's a contraction?

Two successive negative quarters of economic growth

• technical recession

• stagflation

• contraction

• boom

Provides information about changes in the economy at the same time as a change occurring on the trade cycle

• performance

• boom

• recession

• coincident indicator

Phase of trade cycle characterised by income and output at the lowest level with high unemployment

• recession

• recovery

• downswing

• boom

Provides information about changes in the economy following changes in the trade cycle

• leading indicator

• economic performance

• recession

• lagging indicator