Cars: Business Cycles and Fiscal Policies

The study of ___________ involves looking at the economy as a whole rather than looking at individual markets.

One way to determine the health of the overall economy is to use economic indicators. __________________(3 letter answer) is a monetary measure of the market value of all the final goods and services produced and rendered in a specific time period by a country or countries

Gross Domestic Product is calculated by adding the following four components

• consumer spending

• business investment

• government spending

• net exports

• fiscal policy

___________ _____________ are intervals of general expansion followed by recession in economic performance. The changes in economic activity have important implications for the welfare of the general population, government institutions, and private sector firms.

What part of the Business Cycle is labeled: A

• Peak

• Trend at Full Employment

• Expansion/ Recovery

• Trough

• Contraction/ Recession

What part of the Business Cycle is labeled: B

• Peak

• Trend at Full Employment

• Expansion/ Recovery

• Trough

• Contraction/ Recession

What part of the Business Cycle is labeled: C

• Peak

• Trend at Full Employment

• Expansion/ Recovery

• Trough

• Contraction/ Recession

What part of the Business Cycle is labeled: D

• Peak

• Trend at Full Employment

• Expansion/ Recovery

• Trough

• Contraction/ Recession

What part of the Business Cycle is labeled: E

• Peak

• Trend at Full Employment

• Expansion/ Recovery

• Trough

• Contraction/ Recession

Which of the following are TWO reasons why more developed countries have higher GDPs than underdeveloped countries?

• political stability

• more resources/ technology

• higher taxes

• less education