Business Cycle Quiz

A  inflation

B  interest rates

C  business profits

D  unemployment

A  interest rates

B  business profits

C  unemployment

D  inflation

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

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

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

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

A  recession

B  recovery

C  depression

D  trough

A  trade balance is zero.

B  price level is stable.

C  federal budget is balanced.

D  labor force is fully employed.

A  total hours worked.

B  labor force per hour.

C  output per hour of work.

D  input per hour worked.

A  increase wages paid to labor.

B  increase the rate of technical progress.

C  accumulate less capital

D  reduce the population growth rate.

A  Labor productivity should decline

B  Potential output should decrease

C  Potential output should increase

D  There will be no impact on output

A  less, less

B  less, same

C  more, same

D  same, same

A  plant and equipment

B  the ability of humans to make capital goods

C  education, training and health of a labor force

D  tools and machinery

A  crowding.

B  pollution.

C  waste disposal.

D  All of these are costs.

A  the rate of investment was negative

B  business profits were growing

C  the rate of inflation was increasing

D  consumer confidence was euphoric

A  declining unemployment.

B  declining real GDP.

C  increasing real GDP.

D  rising labor productivity.

A  unemployment is rising

B  real GDP has declined for at least two quarters

C  consumer confidence is low

D  business profits are falling

A  population growth.

B  the labor force.

C  labor productivity.

D  labor hours worked.