Understanding the U.S. Economy's Business Cycle

What is the primary focus of the U.S. Economy's business cycle as discussed in the document?

• Predicting stock market trends

• Analyzing technological advancements

• Understanding fluctuations in economic activity

• Evaluating political changes

According to the document, what significant economic event did the U.S. experience from April 2020?

• A prolonged economic boom

• Entry into a two-month recession

• A steady increase in GDP

• Unchanged economic conditions

What does the term "peak" in the business cycle refer to?

• The lowest point of economic activity

• The highest point of economic activity

• The beginning of an economic expansion

• The end of an economic recession

How is the term "recession" defined in the context of the business cycle?

• A period of rapid economic growth

• A decline in GDP for two consecutive quarters

• A significant drop in employment and production

• A short period of economic recovery

What is indicated by the orange bars in Figure 2 of the document?

• Periods of economic expansion

• Peaks in economic activity

• Recessions as identified by NBER

• Troughs in economic activity

What is the average duration of an economic expansion since World War II according to the document?

• About 65 months

• About 50 months

• About 75 months

• About 85 months

What significant event contributed to the COVID-19 recession in March-April 2020?

• Decreased consumer spending and increased saving

• Increased government spending

• Improved business confidence

• Decreased interest rates

Which policy is primarily responsible for setting the level of government spending and tax revenue?

• State policy

• Corporate policy

• Fiscal policy

• Environmental policy

What is one of the potential causes of business cycles as mentioned in the document?

• Technological advancements

• Changes in consumer or business confidence

• Stable government policies

• Consistent economic growth

According to the document, how does the Federal Reserve attempt to manage the volatility of demand during economic crises?

• By increasing tax rates

• By reducing government spending

• By implementing monetary policy

• By expanding corporate laws