Business Cycle Quiz

A  unemployment

B  business profits

C  inflation

D  interest rates

A  business profits

B  unemployment

C  inflation

D  interest rates

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  Generally during a prosperity period wages rise as unemployment falls.

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

A  trough

B  recession

C  depression

D  recovery

A  labor force is fully employed.

B  price level is stable.

C  federal budget is balanced.

D  trade balance is zero.

A  input per hour worked.

B  output per hour of work.

C  labor force per hour.

D  total hours worked.

A  increase wages paid to labor.

B  accumulate less capital

C  reduce the population growth rate.

D  increase the rate of technical progress.

A  There will be no impact on output

B  Labor productivity should decline

C  Potential output should decrease

D  Potential output should increase

A  same, same

B  less, same

C  more, same

D  less, less

A  education, training and health of a labor force

B  the ability of humans to make capital goods

C  tools and machinery

D  plant and equipment

A  crowding.

B  All of these are costs.

C  pollution.

D  waste disposal.

A  business profits were growing

B  the rate of inflation was increasing

C  the rate of investment was negative

D  consumer confidence was euphoric

A  rising labor productivity.

B  declining real GDP.

C  increasing real GDP.

D  declining unemployment.

A  real GDP has declined for at least two quarters

B  business profits are falling

C  unemployment is rising

D  consumer confidence is low

A  population growth.

B  labor productivity.

C  labor hours worked.

D  the labor force.