This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Los Angeles Lakers are in the playoffs this year and are expected to sell more merchandise. Will this count towards GDP? A) Yes-Investment. B) Yes-Consumer Spending. C) No-used items. D) No-intermediate goods. Show Answer Correct Answer: B) Yes-Consumer Spending. 2. What type of Unemployment is represented here?Scenario:The economy is on the decline causing businesses to lay off employees A) Cyclical. B) Seasonal. C) Structural. D) Frictional. Show Answer Correct Answer: A) Cyclical. 3. The higher the GDP/ GDP per capita, ..... A) The higher the voter turnout. B) The better the school systems. C) The worse the economy is. D) The stronger the economy. Show Answer Correct Answer: D) The stronger the economy. 4. What causes cost push inflation A) An increase in demand for goods and services. B) An increase in supply. C) A rise in production costs passed on to consumers. D) A fall in the price of imports. Show Answer Correct Answer: C) A rise in production costs passed on to consumers. 5. The National Debt is A) The total amount of money the government owes. B) The amount of money the government owes within a given year. C) The revenue the government brings in. D) Balanced at zero. Show Answer Correct Answer: A) The total amount of money the government owes. 6. Wages are highest A) Expansion. B) Peak. C) Contraction. D) Trough. Show Answer Correct Answer: B) Peak. 7. Fill in the blank. GDP is the total value of ..... goods and services produced in the economy in a year A) Finished. B) Improved. C) Depreciated. D) Appreciated. Show Answer Correct Answer: A) Finished. 8. In which phase would firms be expanding and opening up new locations A) Peak. B) Depression. C) Recession. D) Recovery. Show Answer Correct Answer: A) Peak. 9. Which of the following is NOT an indicator of the business cycle? A. B. C. D. A) Birth rate. B) Labor costs and productivity. C) Labor force. D) Wages. Show Answer Correct Answer: A) Birth rate. 10. Recessions can end if A) Workers choose to accept lower wages. B) Government policy is enforced to help the economy recover. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 11. Which of the following are responsible for making fiscal policy decision? A) The President and Congress. B) The Federal Reserve System. C) The National Council of Economic Advisors. D) The commerce Department. Show Answer Correct Answer: A) The President and Congress. 12. Which of the following is not a stage in the business life cycle? A) Growth. B) Seed. C) Expansion. D) Post-Maturity. Show Answer Correct Answer: C) Expansion. 13. Which of the following is not a macroeconomic goal? A) Low unemployment. B) Rise in the minimum wage. C) Price level stability. D) None of above. Show Answer Correct Answer: B) Rise in the minimum wage. 14. The more GDP increase from one year to the next, A) The worst the economy is doing. B) The healthier the economy is. C) Has no impact on the health of the economy. D) All of the above. Show Answer Correct Answer: B) The healthier the economy is. 15. The HIGHEST Point in business cycle A) Peak. B) Trough. C) Contraction. D) Recession. Show Answer Correct Answer: A) Peak. 16. What type of GDP uses a base year's prices in order to make fair comparisons? A) GDP per capita. B) Real GDP. C) Nominal GDP. D) None of above. Show Answer Correct Answer: B) Real GDP. 17. What is one limitation of GDP? A) It does not include intermediate goods. B) It does not show how the economy is doing over time. C) It does not include non-durable goods. D) It does not measure health and happiness. Show Answer Correct Answer: D) It does not measure health and happiness. 18. This is the term for the total amount of all goods and services in the economy that households, businesses, and government will buy at each level of prices? A) Aggregate Equilibrium. B) Aggregate Demand. C) Aggravated Surplus. D) Aggregate Supply. Show Answer Correct Answer: B) Aggregate Demand. 19. The four phases of the business cycle are: A) Expansion, Top, Decline, Bottom,. B) Upwards, Peak, Downwards, Lowest. C) Expansion, Peak, Contraction, Trough. D) Increase, Highest, Contraction, Trough. Show Answer Correct Answer: C) Expansion, Peak, Contraction, Trough. 20. Costco builds a new store in Noblesville, Indiana. Where would this show up in the GDP formula? (GDP=C+I+G+(X-M)) A) Consumption (Consumer). B) Investment (Business). C) Government Spending. D) Exports-Imports. Show Answer Correct Answer: B) Investment (Business). ← 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