Economic Cycle Quiz

Which stage of the economic cycle is known for strong economic growth?

• Expansion

• Slowdown

• Recession

• Recovery

What happens to consumer confidence during the expansion stage?

• It is high

• It is low

• It stays the same

• It disappears

What is a sign of the expansion stage in the economic cycle?

• New businesses opening

• Businesses closing

• High unemployment

• Low wages

What happens to unemployment during the expansion stage?

• It drops

• It rises

• It stays the same

• It doubles

What do people often call the expansion stage?

• Boom stage

• Bust stage

• Quiet stage

• Calm stage

Which of the following is an indicator of an economic slowdown?

• Increase in government spending

• Stock market prices drop

• Decrease in interest rates

• Increase in consumer spending

What is a recession?

• When the economy is growing rapidly

• When the GDP gets smaller for two quarters

• When the stock market is booming

• When inflation is very high

What might cause a recession to start?

• A major positive event

• A major negative event

• A decrease in taxes

• An increase in exports

During a recession, what happens to consumer confidence?

• It increases

• It stays the same

• It declines

• It disappears

What happens to inflation during a recession?

• It speeds up

• It slows down

• It stays the same

• It disappears