This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Cycles > Business Cycles – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 12 (13 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Steve can type 100 words a minute, yet he can't find a job as a secretary. What type of unemployment is this? A) Cyclical. B) Frictional. C) Structural. D) None of above. Show Answer Correct Answer: C) Structural. 2. The trend line is not a A) Business cycle. B) Macroeconomic goal. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 3. If the public perception is that the economy is in good hands then A) A peak is coming. B) The economy will grow because people will spend money, businesses will hire people, etc. C) A contraction will occur. D) A recession will follow. Show Answer Correct Answer: B) The economy will grow because people will spend money, businesses will hire people, etc. 4. In the circular flow model, money flows A) One way and business revenue another. B) One way and products flow another. C) The same way as goods and services. D) Same way as productive resources. Show Answer Correct Answer: B) One way and products flow another. 5. Read the following headline and choose the condition that correspond with the business cycle. The price of bread has increased 5% over the past three months. A) Trough. B) Contractionary. C) Growth. D) Peak. Show Answer Correct Answer: D) Peak. 6. Each individual on food stamps in Delaware can receive up to $ 194 a month. Is this included in government spending? A) Yes-Government spending. B) Yes-Consumer Spending. C) No-Intermediate Goods. D) No-Purely financial Transaction. Show Answer Correct Answer: D) No-Purely financial Transaction. 7. Which one of the following items is considered an intermediate good? A) Cake. B) Brownies. C) Bread. D) Flour. Show Answer Correct Answer: D) Flour. 8. On a business cycle graph, what is the top point of the curve where there is maximum level of GDP? A) Bust/Trough/Slump. B) Boom/Peak. C) Recovery. D) Recession. Show Answer Correct Answer: B) Boom/Peak. 9. When calculating GDP, which of the following gets subtracted out? A) Government spending. B) Imports. C) Consumer spending. D) Business investment spending. Show Answer Correct Answer: B) Imports. 10. A "boom" period is economic growth- A) Below the trend line. B) At the peak. C) Above the trend line. D) None of above. Show Answer Correct Answer: C) Above the trend line. 11. Refers to an increase in the general price level associated with an increase in the cost of production. A) Supply Inflation. B) Cost Push Inflation. C) Imported Inflation. D) Demand Pull Inflation. Show Answer Correct Answer: B) Cost Push Inflation. 12. Cars, TVs, computers belong in which part of the GDP formula?GDP = C+I+G+(X-M) A) Net Imports. B) Consumption Expenditures. C) Investment Expenditures. D) Government Expenditures. Show Answer Correct Answer: B) Consumption Expenditures. 13. In which part of the GDP calculation does this fit?You purchase the new iPhone 11. A) Government spending. B) Consumer spending. C) Investment spending. D) Net exports. Show Answer Correct Answer: B) Consumer spending. ← PreviousRelated QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books