Business Cycle Quiz

A  unemployment

B  inflation

C  business profits

D  interest rates

A  unemployment

B  business profits

C  inflation

D  interest rates

A  When unemployment is rising, then real GDP is rising.

B  The four phases of the business cycle, in order, are peak, recovery, trough and recession.

C  Generally during a prosperity period wages rise as unemployment falls.

D  Full employment exists in an economy when the unemployment rate equals the sum of frictional and cyclical unemployment rates.

A  depression

B  recovery

C  trough

D  recession

A  price level is stable.

B  labor force is fully employed.

C  federal budget is balanced.

D  trade balance is zero.

A  total hours worked.

B  output per hour of work.

C  input per hour worked.

D  labor force per hour.

A  reduce the population growth rate.

B  increase the rate of technical progress.

C  accumulate less capital

D  increase wages paid to labor.

A  Labor productivity should decline

B  There will be no impact on output

C  Potential output should increase

D  Potential output should decrease

A  more, same

B  same, same

C  less, same

D  less, less

A  the ability of humans to make capital goods

B  plant and equipment

C  education, training and health of a labor force

D  tools and machinery

A  pollution.

B  waste disposal.

C  All of these are costs.

D  crowding.

A  the rate of inflation was increasing

B  business profits were growing

C  the rate of investment was negative

D  consumer confidence was euphoric

A  declining real GDP.

B  declining unemployment.

C  increasing real GDP.

D  rising labor productivity.

A  real GDP has declined for at least two quarters

B  consumer confidence is low

C  business profits are falling

D  unemployment is rising

A  population growth.

B  labor productivity.

C  labor hours worked.

D  the labor force.