Business Cycle Quiz

A  interest rates

B  inflation

C  unemployment

D  business profits

A  unemployment

B  interest rates

C  inflation

D  business profits

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

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

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

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

A  trough

B  recession

C  recovery

D  depression

A  trade balance is zero.

B  federal budget is balanced.

C  labor force is fully employed.

D  price level is stable.

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  reduce the population growth rate.

C  increase the rate of technical progress.

D  accumulate less capital

A  Potential output should increase

B  Labor productivity should decline

C  Potential output should decrease

D  There will be no impact on output

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  pollution.

C  All of these are costs.

D  waste disposal.

A  the rate of inflation was increasing

B  consumer confidence was euphoric

C  business profits were growing

D  the rate of investment was negative

A  rising labor productivity.

B  declining real GDP.

C  increasing real GDP.

D  declining unemployment.

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  labor productivity.

B  labor hours worked.

C  population growth.

D  the labor force.