Business Cycles Quiz 18 (6 MCQs)

Quiz Instructions

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1. On a business cycle graph, what is the top point of the curve where there is maximum level of GDP?

Correct Answer: A) Boom/Peak.

2. When calculating GDP, which of the following gets subtracted out?

Correct Answer: C) Imports.

3. A "boom" period is economic growth-

Correct Answer: C) Above the trend line.

4. Refers to an increase in the general price level associated with an increase in the cost of production.

Correct Answer: B) Cost Push Inflation.

5. Cars, TVs, computers belong in which part of the GDP formula?GDP = C+I+G+(X-M)

Correct Answer: A) Consumption Expenditures.

6. In which part of the GDP calculation does this fit?You purchase the new iPhone 11.

Correct Answer: A) Consumer spending.