Business Cycle Quiz

A  unemployment

B  interest rates

C  business profits

D  inflation

A  interest rates

B  inflation

C  business profits

D  unemployment

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  depression

B  recession

C  trough

D  recovery

A  federal budget is balanced.

B  labor force is fully employed.

C  trade balance is zero.

D  price level is stable.

A  labor force per hour.

B  output per hour of work.

C  input per hour worked.

D  total hours worked.

A  accumulate less capital

B  increase the rate of technical progress.

C  reduce the population growth rate.

D  increase wages paid to labor.

A  Potential output should decrease

B  Labor productivity should decline

C  There will be no impact on output

D  Potential output should increase

A  less, same

B  more, same

C  less, less

D  same, same

A  education, training and health of a labor force

B  the ability of humans to make capital goods

C  plant and equipment

D  tools and machinery

A  All of these are costs.

B  crowding.

C  waste disposal.

D  pollution.

A  consumer confidence was euphoric

B  business profits were growing

C  the rate of inflation was increasing

D  the rate of investment was negative

A  rising labor productivity.

B  increasing real GDP.

C  declining real GDP.

D  declining unemployment.

A  real GDP has declined for at least two quarters

B  unemployment is rising

C  business profits are falling

D  consumer confidence is low

A  labor productivity.

B  labor hours worked.

C  population growth.

D  the labor force.