Business Cycle Quiz

A  unemployment

B  business profits

C  inflation

D  interest rates

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  When unemployment is rising, then real GDP is rising.

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  depression

B  recovery

C  recession

D  trough

A  labor force is fully employed.

B  trade balance is zero.

C  price level is stable.

D  federal budget is balanced.

A  labor force per hour.

B  total hours worked.

C  input per hour worked.

D  output per hour of work.

A  increase the rate of technical progress.

B  reduce the population growth rate.

C  increase wages paid to labor.

D  accumulate less capital

A  There will be no impact on output

B  Potential output should decrease

C  Potential output should increase

D  Labor productivity should decline

A  less, same

B  less, less

C  more, same

D  same, same

A  plant and equipment

B  the ability of humans to make capital goods

C  education, training and health of a labor force

D  tools and machinery

A  waste disposal.

B  pollution.

C  All of these are costs.

D  crowding.

A  the rate of investment was negative

B  consumer confidence was euphoric

C  business profits were growing

D  the rate of inflation was increasing

A  rising labor productivity.

B  increasing real GDP.

C  declining unemployment.

D  declining real GDP.

A  consumer confidence is low

B  unemployment is rising

C  real GDP has declined for at least two quarters

D  business profits are falling

A  labor productivity.

B  population growth.

C  labor hours worked.

D  the labor force.