This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following lists each part of the business cycle? A) Peak, Downhill, Pit, Expansion. B) Peak, Recession, Pit, Explosion. C) Peak, Recession, Trough, Expansion. D) Peak, Pit, Recession, Explosion. Show Answer Correct Answer: C) Peak, Recession, Trough, Expansion. 2. They spend more than they earn, reducing their accumulated savings or going deeper into debt. A) Middle class. B) Poor people. C) Rich people. D) None of the above. Show Answer Correct Answer: B) Poor people. 3. Dover Downs will sell millions of dollars of NASCAR merchandise on race weekend. Will this be included in GDP? A) Yes-Investment. B) Yes-Consumer Spending. C) No-used items. D) No-intermediate goods. Show Answer Correct Answer: B) Yes-Consumer Spending. 4. Peggy, a recent college graduate, decides to look for a job instead of going to graduate school. If she is unable to find a job that suits her interest right away, what type of unemployment is she MOST likely experiencing? A) Structural. B) Seasonal. C) Frictional. D) Cyclical. Show Answer Correct Answer: C) Frictional. 5. As the economy nears the end of an expansion, interest rates usually ..... and wages rise more ..... than prices. A) Rise; rapidly. B) Rise; slowly. C) Fall; rapidly. D) Fall; slowly. Show Answer Correct Answer: A) Rise; rapidly. 6. Which year is the base year?1997 CPI = 951998 CPI = 971999 CPI = 1002000 CPI = 104 A) 1997. B) 1998. C) 1999. D) 2000. Show Answer Correct Answer: C) 1999. 7. To obtain an accurate picture of how the economy is doing, it is important to use A) Nominate GDP. B) Real-gdp. C) Gdp plus observations. D) All of the above. Show Answer Correct Answer: B) Real-gdp. 8. Which of the following is not considered a cost of inflation? A) Shoe-leather costs. B) Output costs. C) Menu costs. D) Unit of account costs. Show Answer Correct Answer: B) Output costs. 9. The business cycle rises above the trendline during- A) Rescessions. B) Expansions. C) Troughs. D) None of above. Show Answer Correct Answer: B) Expansions. 10. One of the problems with the unemployment rate is that it A) Does not reflect workers who have given up searching for a job. B) Is not measured accurately. C) Counts underemployed workers as unemployed workers. D) Does not count any workers above the age of 55. Show Answer Correct Answer: A) Does not reflect workers who have given up searching for a job. 11. Nominal GDP ..... = Real GDP A) Inflation. B) Unemployment. C) Imports. D) Exports. Show Answer Correct Answer: A) Inflation. 12. What term is used to describe the percent of the labor force that does not have a job but is currently looking for one? A) Leading economic indicator. B) Full employment. C) Unemployment rate. D) Workforce. Show Answer Correct Answer: C) Unemployment rate. 13. 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) Cyclical. B) Structural. C) Seasonal. D) Frictional. Show Answer Correct Answer: A) Cyclical. 14. 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. 15. In which part of the GDP calculation does this fit?The local taxi service purchases new vehicles for the company. A) Consumer spending. B) Government spending. C) Investment spending. D) Net exports. Show Answer Correct Answer: C) Investment spending. 16. What usually happens to inflation during a recession? A) It stays the same. B) It increases. C) It decreases. D) It is zero. Show Answer Correct Answer: C) It decreases. 17. Unemployment caused by a fall in demand for goods and services across the economy. A) Frictional unemployment. B) Seasonal unemployment. C) Structural unemployment. D) Cyclical unemployment. Show Answer Correct Answer: D) Cyclical unemployment. 18. 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 + G + (X-M). D) GDP = C + I + (X-M). Show Answer Correct Answer: C) GDP = C + I + G + (X-M). 19. Tanks and roads belong in which part of the GDP formula?GDP = C+I+G+(X-M) A) Consumption Expenditures. B) Investment Expenditures. C) Government Expenditures. D) Net Imports. Show Answer Correct Answer: C) Government Expenditures. 20. 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. ← PreviousNext →Related QuizzesMacroeconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books