This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Inflation measures ..... A) The value of all final goods and services produced. B) An increase in the general price level. C) The percentage of people looking for work that can't find it. D) The economic freedom an economy offers. Show Answer Correct Answer: B) An increase in the general price level. 2. Jeff was replaced by a computer. He is experiencing what type of unemployment? A) Cyclical. B) Structural. C) Seasonal. D) Frictional. Show Answer Correct Answer: B) Structural. 3. What phase of the business cycle are we in today? A) Expansionary. B) Recessionary. C) Peak. D) Trough. Show Answer Correct Answer: A) Expansionary. 4. A worker who was laid off due to a downturn in the business cycle would be considered A) Frictionally unemployed. B) Structurally unemployed. C) Cyclically unemployed. D) Seasonally unemployed. Show Answer Correct Answer: C) Cyclically unemployed. 5. Use the following data to determine the unemployment rate:Total population 1000Full time workers 500Part time workers 200Discouraged workers 10Unemployed 70What is the unemployment rate? A) 8%. B) 9%. C) 10%. D) 11%. Show Answer Correct Answer: B) 9%. 6. Type of unemployment that occurs when workers skills do not match those needed for the jobs available. A) Seasonal Unemployment. B) Structural Unemployment. C) Frictional Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: B) Structural Unemployment. 7. Read the following headline and choose the condition that correspond with the business cycle.Due to factory closures unemployment has risen to a five year high of 10% A) Peak. B) Contractionary. C) Trough. D) Growth. Show Answer Correct Answer: C) Trough. 8. During times of economic recession the unemployment rate usually A) Stays around 25%. B) Stays the same. C) Increases. D) Decreases. Show Answer Correct Answer: C) Increases. 9. Which of the following is not a phase in the business cycle? A) Peak. B) Trough. C) Shutdown. D) Expansion. Show Answer Correct Answer: C) Shutdown. 10. An investor with holdings primarily in ..... sectors will perform best in the recession stage of the business cycle. A) Consumer Discretionary & Consumer Staples. B) Consumer Staples & Energy. C) Telecom & Health Care. D) Financials & Financials. Show Answer Correct Answer: C) Telecom & Health Care. 11. "Dunder Mifflin Corporation Fires 5, 000 Employees" This headline affects which economic indicator the most? A) Consumer Price Index. B) Consumer Spending. C) Unemployment rates. D) Inflation. Show Answer Correct Answer: C) Unemployment rates. 12. GDP, or gross domestic product, measures ..... A) The value of all final goods and services produced. B) An increase in the general price level. C) The percentage of people looking for work that can't find it. D) The economic freedom an economy offers. Show Answer Correct Answer: A) The value of all final goods and services produced. 13. If GDP of the economy grows, what is MOST LIKELY to happen to investment by a business in the economy? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 14. The Gross Domestic Product measured in current prices describes what? A) Real GDP. B) Current GDP. C) Nominal GDP. D) Total GDP. Show Answer Correct Answer: C) Nominal GDP. 15. This stage of the business life cycle is generally the longest that a business will experience, and reflects dominating presence. A) Maturity. B) Seed. C) Growth. D) Start-up. Show Answer Correct Answer: A) Maturity. 16. If you graph Real GDP, then you have created ..... A) An economic forecast. B) An Inflation Index. C) The Business Cycle. D) Labor Output Graph. Show Answer Correct Answer: C) The Business Cycle. 17. In January of 2017 when President Obama left office and began looking for another job. he was considered A) Seasonal Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Structural Unemployment. Show Answer Correct Answer: C) Frictional Unemployment. 18. The real business cycle theory is most closely related to A) Keynesian theory. B) Monetarist theory. C) The classical model. D) All of the above. Show Answer Correct Answer: C) The classical model. 19. When individuals lose jobs due to fall in aggregate demand, often during an economic recession. A) Structural Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: B) Cyclical Unemployment. 20. Which of the following is a lagging indicator that changes after real GDP and helps economists get a clearer sense of exactly when a recession or expansion might have ended? A) Personal income. B) The ratio of how much consumers owe to measures of personal income. C) Stock prices. D) None of above. Show Answer Correct Answer: C) Stock prices. ← PreviousNext →Related QuizzesMacroeconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8Business Cycles Quiz 9Business Cycles Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books