Define the term: Coincident indicators.

Coincident indicators are economic indicators that move at the same time as the overall economy, reflecting the current state of economic activity.

Define the term: Depression.

A depression is a severe and prolonged downturn in economic activity, characterized by significant declines in income, employment, and production.

Define the term: Expansion.

Expansion is a phase of the business cycle where economic activity is increasing, marked by rising output and employment.

What is the main economic indicator that economists use to measure changes in economic activity?

Real gross domestic product (real GDP)

What general trend is observed in the level of real GDP over this period?

It shows a fairly constant upward trend

Describe the long-term trend in Australia’s real GDP shown in the chart.

Australia’s real GDP has shown a steady increase over the long term.

Australia’s real GDP has remained constant over the long term.

Australia’s real GDP has shown a steady decrease over the long term.

Australia’s real GDP has fluctuated wildly with no clear trend over the long term.

Identify one period of economic expansion and one period of contraction in Australia’s business cycle using the chart.

2003-2007 (expansion), 2008-2009 (contraction)

2008-2009 (expansion), 2003-2007 (contraction)

2003-2005 (contraction), 2006-2008 (expansion)

2007-2008 (expansion), 2009-2010 (contraction)

The contraction shown in 2020 would have affected unemployment levels in Australia by:

increasing unemployment due to reduced economic activity.

decreasing unemployment due to increased hiring.

having no impact on unemployment levels.

causing a sudden rise in wages.

The COVID-19 contraction shown in the chart demonstrates the relationship between GDP and cyclical unemployment as:

A decrease in GDP leads to an increase in cyclical unemployment.

An increase in GDP leads to an increase in cyclical unemployment.

A decrease in GDP leads to a decrease in cyclical unemployment.

Cyclical unemployment is not affected by changes in GDP.

Fiscal policy can be used to stabilise the business cycle by:

Increasing government spending and/or cutting taxes during a recession to boost GDP.

Reducing government spending and raising taxes during a recession to boost GDP.

Keeping government spending and taxes unchanged regardless of the business cycle.

Only using monetary policy to influence the business cycle.

A contraction in real GDP typically leads to which of the following economic consequences for households, firms, and government?

Higher unemployment, lower incomes, reduced tax revenues

Increased consumer spending, higher business profits, increased government spending

Lower unemployment, higher incomes, increased tax revenues

Stable employment, unchanged incomes, constant government revenue

The effectiveness of government macroeconomic policies in reducing the severity of business cycle fluctuations in Australia since 2020 can be described as:

Moderate, with fiscal and monetary policies helping to cushion the impact of economic shocks.

Ineffective, with no noticeable impact on business cycle fluctuations.

Highly effective, completely eliminating all business cycle fluctuations.

Counterproductive, increasing the severity of business cycle fluctuations.

The graph titled 'THE GROWTH RATE OF REAL GDP' shows the volatility of the growth rate of real GDP over the period shown. The volatility of the growth rate of real GDP over the period is:

high, with frequent fluctuations

steadily increasing without fluctuations

steadily decreasing without fluctuations

What is potential real GDP?

The level of GDP that can be produced when the economy is at full employment.

The GDP measured after inflation.

The GDP that changes unpredictably.

The GDP of only the labor force.

What is a positive economic shock?

An event that causes an increase in economic activity reflected by an increase in production, employment, and income

An event that causes a decrease in economic activity

Which of the following is an example of a positive economic shock?

C) An increase in China’s growth rate

According to the business cycle concept, what happens when actual GDP is above potential GDP?

The economy experiences a positive output gap and unemployment falls below 4%

The economy experiences a negative output gap and unemployment rises above 4%

The economy experiences a positive output gap and unemployment rises above 4%

The economy experiences a negative output gap and unemployment falls below 4%

2025 Yr 11 Business Cycle

Authored by Em Macpherson

Business

11th Grade

Used 5+ times

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

FILL IN THE BLANKS QUESTION

30 sec • 1 pt

highest point of the business cycle, where the level of economic activity reaches its maximum before the economy enters a contraction. This is a:

(a)

FILL IN THE BLANKS QUESTION

30 sec • 1 pt

Identify this term: The recurring fluctuations in the level of economic activity (real GDP) around its long-term growth trend over time. (a)

FILL IN THE BLANKS QUESTION

30 sec • 1 pt

A phase of the business cycle where economic activity and real GDP decrease, moving the economy from a peak towards a trough. This is a (a)

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2025 Yr 11 Business Cycle

The business cycle refers to:

The business cycle consists of which of the following phases?

Which of the following are indicators of macroeconomic activity?

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

highest point of the business cycle, where the level of economic activity reaches its maximum before the economy enters a contraction. This is a:

(a)

Identify this term: The recurring fluctuations in the level of economic activity (real GDP) around its long-term growth trend over time. (a)

A phase of the business cycle where economic activity and real GDP decrease, moving the economy from a peak towards a trough. This is a (a)

An economic indicator that moves in the opposite direction of the overall economy, rising when the economy falls and falling when the economy rises. This is the (a) economic indicator.

Define the term: Coincident indicators.

(a)

Define the term: Depression.

(a)

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business

2025 Yr 11 Business Cycle

The business cycle refers to:

The business cycle consists of which of the following phases?

Which of the following are indicators of macroeconomic activity?

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

highest point of the business cycle, where the level of economic activity reaches its maximum before the economy enters a contraction. This is a: (a) ​

Identify this term: The recurring fluctuations in the level of economic activity (real GDP) around its long-term growth trend over time.​ (a)

A phase of the business cycle where economic activity and real GDP decrease, moving the economy from a peak towards a trough. This is a ​ (a)

An economic indicator that moves in the opposite direction of the overall economy, rising when the economy falls and falling when the economy rises. This is the​ (a) economic indicator.

Define the term: Coincident indicators. (a)

Define the term: Depression. (a)

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business

highest point of the business cycle, where the level of economic activity reaches its maximum before the economy enters a contraction. This is a:

(a)

Identify this term: The recurring fluctuations in the level of economic activity (real GDP) around its long-term growth trend over time. (a)

A phase of the business cycle where economic activity and real GDP decrease, moving the economy from a peak towards a trough. This is a (a)

An economic indicator that moves in the opposite direction of the overall economy, rising when the economy falls and falling when the economy rises. This is the (a) economic indicator.

Define the term: Coincident indicators.

(a)

Define the term: Depression.

(a)