Phases of Business Cycles

The business cycle directly measures which economic goal?

• full employment

• growth

• price stability

The performance of which other goal(s) can be inferred from the business cycle?

• full employment

• price stability

• both full employment & price stability

Which option presents the business cycle in the correct order

• trough, contraction, peak, recovery

• trough, expansion, peak, contraction

• peak, expansion, trough, recovery

• peak, contraction, recovery, trough

The straight line overlaid on the business cycle represents the economy's full employment level.

• False

• True

Check all that apply.

Which of the following goal(s) are strong at the peak?

• equity

• full employment

• growth

• price stability

Check all that apply.

Which of the following goal(s) is mostly likely to be in trouble at the peak?

• equity

• full employment

• growth

• price stability

Check all that apply.

Which of the following goal(s) is mostly likely to be in trouble at the trough?

• equity

• full employment

• growth

• price stability

If a news headline says, "Finally!!! 3 straight months of increased jobs and positive consumer confidence,"

which period on the business cycle is being reference?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "After 6 straight years of growth, is the economy at a TURNING POINT?"

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "3 months of consecutive job losses is negatively impacting consumer confidence,"

what period on the business cycle is being referenced?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery