Business Cycle Quiz

A  inflation

B  business profits

C  unemployment

D  interest rates

A  unemployment

B  interest rates

C  business profits

D  inflation

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  recovery

B  depression

C  trough

D  recession

A  federal budget is balanced.

B  trade balance is zero.

C  labor force is fully employed.

D  price level is stable.

A  labor force per hour.

B  output per hour of work.

C  total hours worked.

D  input per hour worked.

A  reduce the population growth rate.

B  accumulate less capital

C  increase wages paid to labor.

D  increase the rate of technical progress.

A  Potential output should decrease

B  There will be no impact on output

C  Labor productivity should decline

D  Potential output should increase

A  less, less

B  more, same

C  same, same

D  less, same

A  tools and machinery

B  plant and equipment

C  education, training and health of a labor force

D  the ability of humans to make capital goods

A  waste disposal.

B  crowding.

C  All of these are costs.

D  pollution.

A  business profits were growing

B  consumer confidence was euphoric

C  the rate of investment was negative

D  the rate of inflation was increasing

A  increasing real GDP.

B  declining unemployment.

C  rising labor productivity.

D  declining real GDP.

A  unemployment is rising

B  business profits are falling

C  real GDP has declined for at least two quarters

D  consumer confidence is low

A  labor productivity.

B  labor hours worked.

C  population growth.

D  the labor force.