Business Cycle Quiz

A  business profits

B  interest rates

C  inflation

D  unemployment

A  inflation

B  interest rates

C  unemployment

D  business profits

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

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

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

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

A  recovery

B  trough

C  recession

D  depression

A  trade balance is zero.

B  federal budget is balanced.

C  price level is stable.

D  labor force is fully employed.

A  total hours worked.

B  input per hour worked.

C  output per hour of work.

D  labor force per hour.

A  increase the rate of technical progress.

B  increase wages paid to labor.

C  reduce the population growth rate.

D  accumulate less capital

A  There will be no impact on output

B  Labor productivity should decline

C  Potential output should decrease

D  Potential output should increase

A  less, less

B  same, same

C  less, same

D  more, same

A  education, training and health of a labor force

B  plant and equipment

C  the ability of humans to make capital goods

D  tools and machinery

A  All of these are costs.

B  waste disposal.

C  crowding.

D  pollution.

A  consumer confidence was euphoric

B  the rate of inflation was increasing

C  the rate of investment was negative

D  business profits were growing

A  declining unemployment.

B  increasing real GDP.

C  rising labor productivity.

D  declining real GDP.

A  consumer confidence is low

B  business profits are falling

C  real GDP has declined for at least two quarters

D  unemployment is rising

A  population growth.

B  labor hours worked.

C  the labor force.

D  labor productivity.