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WorksheetsThe Business Cycle
Total questions: 22
Worksheet time: 11mins
Define Business Cycle
the recurring ups of GDP
the recurring downs of GDP
the recurring ups and downs of GDP
the movement of economy from one condition to another
What is prosperity?
a period in which most people who want to work are working
the demands for goods and services are low
businesses produce goods and services in record numbers, wages are good
the rate and growth of GDP increases
What is Recession?
a period in which demand increases
the economy speeds up
a period in which demand begins to decrease
always last for short periods
What is Depression?
a phase marked by a prolonged period of high employment, strong consumer sales, and business failures.
a phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures.
the phase after a long period of recession
What is Recovery?
the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise
less jobs are available
less goods and services are produced
GDP is the total value of all final goods and services produced in a country during one year?
True
False
Is this an example of the Ripple Effect?
If few people buy cars, a number of workers who make batteries, tires, and other parts may lose their job.
False
True
During the great depression around what percent of the US was unemployed
100%
75%
50%
25%
Prosperity is the low point in the business cycle?
True
False
What are the phases of the business cycle?
prosperity
recession
depression
recovery
Does a recession cause employment to rise?
True
False
What does the shaded area on the diagram represent?
recession
prosperity
depression
recovery
What does the shaded part in the diagram represent?
recession
prosperity
recovery
depression
Would this graph most likely be a time of depression or prosperity?
prosperity
depression
True or False: The Business cycle is made up of economic weaknesses and strengths?
True
False
Which phase of the Business Cycle includes the economy beginning to have a decrease in GDP?
Prosperity
Recession
Depression
Recovery
The LOWEST point in the business cycle
Peak
Trough
Expansion
Contraction
If GDP falls for at least 2 Quarters, it is called.
Expansion
Recession
prosperity
recovery
Economists can precisely predict business cycles.
True
False
Most business cycles last
Two full years
Two consecutive quarters
At least 10 years
Varying lengths of time
