Business Cycles Quiz

What phase of the business cycle is characterized by increasing employment, economic growth, and upward pressure on prices?

• Recession

• Expansion

• Peak

• Trough

Which of the following is a primary cause of business cycles?

• Constant consumer confidence

• Steady government policies

• Changes in national interest rates

• Uniform global economic conditions

What economic indicator would most likely signal an upcoming recession?

• A rise in the stock market

• An increase in consumer spending

• A decrease in the unemployment rate

• A decline in gross domestic product (GDP) for two consecutive quarters

During which phase of the business cycle does unemployment begin to decrease?

• Peak

• Recession

• Recovery

• Expansion

Which of the following is considered a leading economic indicator?

• Consumer Price Index (CPI)

• Gross Domestic Product (GDP)

• Stock Market Indexes

• Unemployment Rate