This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Cycles > Business Cycles – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Jim lost his job as a stock broker during the recession in 2008. He was unable to find a new position until 2010. During 2008-2010 Jim experienced what kind of unemployment? A) Frictional. B) Seasonal. C) Structural. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 2. What is considered "interest" in the GDP income approach? A) Worker's wages. B) Money paid for the use of land. C) The remaining income after all expenses have been paid out. D) Money paid to people that lend money to the business. Show Answer Correct Answer: D) Money paid to people that lend money to the business. 3. In which part of the GDP calculation does this fit?The local taxi service purchases new vehicles for the company. A) Government spending. B) Consumer spending. C) Investment spending. D) Net exports. Show Answer Correct Answer: C) Investment spending. 4. What usually happens to inflation during a recession? A) It stays the same. B) It decreases. C) It increases. D) It is zero. Show Answer Correct Answer: B) It decreases. 5. Unemployment caused by a fall in demand for goods and services across the economy. A) Seasonal unemployment. B) Structural unemployment. C) Cyclical unemployment. D) Frictional unemployment. Show Answer Correct Answer: C) Cyclical unemployment. 6. All final goods and services that make up GDP can be expressed in the form: A) GDP = C + I-G + (X + M). B) GDP = C + I + G + (X-M). C) GDP = C + I + (X-M). D) GDP = C + I + G + (X + M). Show Answer Correct Answer: B) GDP = C + I + G + (X-M). 7. Tanks and roads belong in which part of the GDP formula?GDP = C+I+G+(X-M) A) Net Imports. B) Consumption Expenditures. C) Government Expenditures. D) Investment Expenditures. Show Answer Correct Answer: C) Government Expenditures. 8. What type of GDP is calculated with the current year's prices? A) Nominal GDP. B) Real GDP. C) GDP per capita. D) None of above. Show Answer Correct Answer: A) Nominal GDP. 9. Taxing & spending to slow the economy is referred to as A) Budget surplus. B) Budget deficit. C) Monetary policy. D) Contractionary policy. Show Answer Correct Answer: D) Contractionary policy. 10. Indianapolis purchases a new fire truck. Where would this show up in GDP formula? (GDP=C+I+G+(X-M)) A) Investment (Business). B) Consumption (Consumer). C) Exports-Imports. D) Government Spending. Show Answer Correct Answer: D) Government Spending. 11. Recurring periods of expanding and contracting economic activity A) Microeconomics. B) Business cycle. C) Gross Domestic Product. D) National Income Accounting. Show Answer Correct Answer: B) Business cycle. 12. When an individual is unemployed because they are looking for a new job. A) Structural Unemployment. B) Frictional Unemployment. C) Cyclical Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: B) Frictional Unemployment. 13. If GDP of the economy grows, what is MOST LIKELY to happen to congestion, pollution, and transport issues in the economy? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 14. Which of the following is NOT a business cycle indicator? A) Labor force. B) National defense. C) Out of date products. D) Personal incomes and consumer attitudes. Show Answer Correct Answer: C) Out of date products. 15. What is considered "profit" in the GDP income approach? A) Workers' wages. B) Money paid for the use of land. C) The remaining income after all expenses have been paid out. D) Money paid to people that lend money to the business. Show Answer Correct Answer: C) The remaining income after all expenses have been paid out. 16. Read the following headline and choose the condition that correspond with the business cycle.The unemployment rate is at 3.4%, a new 15 year low. A) Trough. B) Growth. C) Peak. D) Contractionary. Show Answer Correct Answer: C) Peak. 17. If the unemployment rate goes down, what will most likely happen to real GDP? A) Goes up. B) Goes down. C) It will have no effect. D) None of above. Show Answer Correct Answer: A) Goes up. 18. This type of inflation occurs when an increase in the in production costs are passed on to the consumer. A) Supply Inflation. B) Cost Push Inflation. C) Imported Inflation. D) Demand Pull Inflation. Show Answer Correct Answer: B) Cost Push Inflation. 19. In 2018, how much did the U.S. produce in final goods and services (GDP) A) Zero. B) 12 billion dollars. C) 9 trillion dollars. D) 18.5 trillion dollars. Show Answer Correct Answer: D) 18.5 trillion dollars. 20. What is the definition for GDP? A) The market value of all final goods and services produced in a nation during a period of time, usually a year. B) The increase of general prices over time. C) When people do not have jobs and are actively looking for one. D) None of above. Show Answer Correct Answer: A) The market value of all final goods and services produced in a nation during a period of time, usually a year. 21. During recessions all of the following usually happen EXCEPT A) Inflation decreases. B) Unemployment increases. C) GDP decreases. D) Inflation increases. Show Answer Correct Answer: D) Inflation increases. 22. Nicole was laid off as a waitress when her restaurant closed down due to the slow economy. Nicole is considered A) Cyclically unemployed. B) Frictionally unemployed. C) Seasonally unemployed. D) Not in the labor force. Show Answer Correct Answer: A) Cyclically unemployed. 23. The Business Cycle measures ..... over time. A) Wealth. B) Inflation. C) Economic growth. D) None of above. Show Answer Correct Answer: C) Economic growth. 24. A nation seeking to increase its overall productivity might be best served by investing money into which area? A) Infrastructure. B) Housing. C) Technology. D) Healthcare. Show Answer Correct Answer: C) Technology. 25. What is the formula for GDP? A) C + I + G / (X-M). B) C + I + G + (M-X). C) C + I + G + (population). D) C + I + G + (X-M). Show Answer Correct Answer: D) C + I + G + (X-M). 26. Unemployment caused when a person resigns from their job to start looking for a higher paying job that better suits their skills. A) Frictional. B) Cyclical. C) Seasonal. D) Structural. Show Answer Correct Answer: A) Frictional. 27. When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession. A) Cyclical Unemployment. B) Frictional Unemployment. C) Structural Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: A) Cyclical Unemployment. 28. It is important to control the strength of expansions because A) It is important to keep inflation from getting too high. B) It will help prevent recessions from happening. C) It is important to keep unemployment from getting too high. D) Long run growth is not desirable. Show Answer Correct Answer: A) It is important to keep inflation from getting too high. 29. "Prices for consumer goods down 5% this year!" This headline affects which economic indicator the most? A) Productivity. B) Unemployment. C) Gross Domestic Product (GDP). D) Consumer Price Index. Show Answer Correct Answer: D) Consumer Price Index. 30. As real GDP decreases, what increases? A) Business. B) Unemployment. C) Interest. D) Employment. Show Answer Correct Answer: B) Unemployment. ← PreviousNext →Related 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books