Business Cycle Quiz

A  interest rates

B  unemployment

C  inflation

D  business profits

A  unemployment

B  business profits

C  interest rates

D  inflation

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

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

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

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

A  recession

B  trough

C  depression

D  recovery

A  trade balance is zero.

B  federal budget is balanced.

C  labor force is fully employed.

D  price level is stable.

A  input per hour worked.

B  total hours worked.

C  output per hour of work.

D  labor force per hour.

A  reduce the population growth rate.

B  increase the rate of technical progress.

C  increase wages paid to labor.

D  accumulate less capital

A  Potential output should increase

B  There will be no impact on output

C  Potential output should decrease

D  Labor productivity should decline

A  more, same

B  less, less

C  same, same

D  less, same

A  the ability of humans to make capital goods

B  tools and machinery

C  plant and equipment

D  education, training and health of a labor force

A  crowding.

B  waste disposal.

C  pollution.

D  All of these are costs.

A  the rate of investment was negative

B  business profits were growing

C  consumer confidence was euphoric

D  the rate of inflation was increasing

A  declining real GDP.

B  declining unemployment.

C  increasing real GDP.

D  rising labor productivity.

A  unemployment is rising

B  consumer confidence is low

C  business profits are falling

D  real GDP has declined for at least two quarters

A  labor productivity.

B  population growth.

C  the labor force.

D  labor hours worked.