Business Cycle Quiz

A  unemployment

B  business profits

C  inflation

D  interest rates

A  interest rates

B  business profits

C  inflation

D  unemployment

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

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

A  trough

B  recession

C  recovery

D  depression

A  price level is stable.

B  trade balance is zero.

C  labor force is fully employed.

D  federal budget is balanced.

A  labor force per hour.

B  input per hour worked.

C  output per hour of work.

D  total hours worked.

A  increase the rate of technical progress.

B  increase wages paid to labor.

C  accumulate less capital

D  reduce the population growth rate.

A  Potential output should decrease

B  Labor productivity should decline

C  There will be no impact on output

D  Potential output should increase

A  same, same

B  less, same

C  less, less

D  more, 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  crowding.

B  waste disposal.

C  All of these are costs.

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  increasing real GDP.

B  declining unemployment.

C  declining real GDP.

D  rising labor productivity.

A  business profits are falling

B  unemployment is rising

C  real GDP has declined for at least two quarters

D  consumer confidence is low

A  labor hours worked.

B  labor productivity.

C  population growth.

D  the labor force.