Economics Cycle and Indicators

What does the Business Cycle show?

• The total value of goods and services

• Periods of growth and decline in the economy

• The rate of unemployment

• The degree of wealth and comfort

Which term refers to the total value of all final goods and services produced by a country in one calendar year?

• Standard of Living

• Business Cycle

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

What is a key economic indicator that measures the percentage of unemployed people looking for work?

• GDP

• CPI

• Unemployment Rate

• Inflation

What is the Trough in a business cycle?

• The highest point in a business cycle

• A phase of economic recovery

• A low point in the business cycle

• A period of temporary economic decline

Which period is characterized by a decrease in economic output?

• Expansion Period

• Peak Period

• Contraction Period

• Trough

What is the highest point in a business cycle called?

• Expansion Period

• Peak Period

• Contraction Period

• Trough

In which phase of the business cycle does GDP growth begin to rise?

• Expansion

• Peak/Boom

• Contraction

• Trough/Bust

What is a key indicator of economic expansion?

• Increased unemployment

• Decreased consumer spending

• Increased production and output

• Higher interest rates

What is a common effect on consumer behavior during an economic expansion?

• Decreased spending

• Increased saving

• Increased consumer spending

• Decreased confidence

What typically happens to consumer spending during an economic expansion?

• It decreases

• It remains stable

• It increases

• It becomes unpredictable