2025 Yr 11 Business Cycle

The business cycle refers to:

• the fluctuations in economic activity over time, including periods of expansion and contraction.

• the process of starting and closing a business.

• the annual budgeting process of a company.

• the cycle of hiring and firing employees in a business.

The business cycle consists of which of the following phases?

• Expansion, Peak, Contraction, Trough

• Start, Growth, Decline, End

• Boom, Bust, Recovery, Recession

• Launch, Plateau, Fall, Recovery

Which of the following are indicators of macroeconomic activity?

• GDP, inflation rate, unemployment rate, and balance of payments

• Personal savings, household chores, and local events

• Favorite foods, movie preferences, and hobbies

• Weather patterns, seasons, and daily temperature

The impact of events on the business cycle in Australia over the last five years has included:

• Economic fluctuations due to events such as the COVID-19 pandemic and natural disasters

• A period of uninterrupted economic growth with no major disruptions

• Consistent decline in GDP every year

• No significant changes in unemployment rates

Define the term: Boom.

(a)  

Define the term: Business cycle.

(a)  

Define the term: Contraction.

(a)  

Define the term: Countercyclical variable.

(a)  

Define the term: Coincident indicators.

(a)  

Define the term: Depression.

(a)