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Business Cycle

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The business cycle is made up of how many phases?

a)

5

b)

4

c)

3

d)

2

2.

An economy is officially considered to be in recession after two consecutive (continuous) quarters of falling GDP.

a)

True

b)

False

3.

A (An) _____ is a cause of a trough.

a)

brand new product

b)

broken product

c)

expensive product

d)

severely outdated product

4.

Which of the following describes the growth part of the business cycle?

a)

Accounts for the time when business activity has reached a maximum

b)

Commonly defined as two consecutive quarterly declines in Gross Domestic Product

c)

Is the lowest levels during a recession

d)

Occurs when persistent increases in the key measurements of aggregate economic activities are present

5.

What is the lowest level of a recession?

a)

Peak

b)

Pit

c)

Resolution

d)

Trough

6.

Which of the following is NOT a business cycle indicator?

a)

Labor force

b)

National defense

c)

Out of date products

d)

Personal incomes and consumer attitudes

7.

Which of the following describes the virtuous cycle?

a)

A representation concerning the patterns of expansion and contraction in the economy, consisting of the growth, peak, recession and trough phases

b)

An increase in sales results in increase in production which causes increase in employment leading to increased income which starts the cycle over again

c)

The lowest levels experienced during a recession

d)

The period in which business activity has reached a maximum

8.

Which of the following lists each part of the business cycle?

a)

Peak, Downhill, Pit, Expansion

b)

Peak, Recession, Pit, Explosion

c)

Peak, Recession, Trough, Expansion

d)

Peak, Pit, Recession, Explosion

9.

Which of the following describes the term productivity?

a)

Consecutive quarterly declines in Gross Domestic Product

b)

Measurement of physical output for each unit of input used, usually referring to labor hours

c)

Period in which business activity has reached a maximum

d)

Sum or whole amount of something

10.

Economic recovery begins-

a)

above the trend line

b)

at the end of a recession (trough)

c)

at the "boom" period