This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. GDP stands for which of the following? A) Gross Domestic Product. B) Gross Demand Product. C) General Domestic Product. D) General Demand Product. Show Answer Correct Answer: A) Gross Domestic Product. 2. Thousands of workers at a toy factory lose their jobs when the company they work for relocates their factories and operations to Taiwan. These workers are experiencing A) Seasonal unemployment. B) Frictional unemployment. C) Structural unemployment. D) Cyclical unemployment. Show Answer Correct Answer: C) Structural unemployment. 3. My father was a fisherman, I am a fisherman and my son will be a fisherman. A) Market. B) Mixed. C) Command. D) Traditional. Show Answer Correct Answer: D) Traditional. 4. "The DOW Jones industrial average on the stock market reaches an all-time high!" This headline corresponds to which part of the business cycle the best? A) Expansionary. B) Peak. C) Contractionary. D) Trough. Show Answer Correct Answer: B) Peak. 5. If an economy is at full employment, it has an unemployment rate that is called the A) Natural rate of unemployment. B) Frictionally-adjusted unemployment rate. C) Cyclically-adjusted unemployment rate. D) Potential rate of unemployment. Show Answer Correct Answer: A) Natural rate of unemployment. 6. In which part of the GDP calculation does this fit? You spend $ 15 at AMC to see the latest Avengers movie. A) Consumer spending. B) Government spending. C) Investment spending. D) Net exports. Show Answer Correct Answer: A) Consumer spending. 7. This is unemployment because people are between jobs or who are looking for their first job: A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: A) Frictional. 8. GDP is the process of declining during a(an) A) Peak. B) Contraction. C) Expansion. D) Trough. Show Answer Correct Answer: B) Contraction. 9. GDP is the value of A) Only goods. B) Only services. C) All final goods and services sold. D) Immediate goods. Show Answer Correct Answer: C) All final goods and services sold. 10. The lowest point of output in a recession, before a recovery begins A) Trade deficit. B) Depression. C) Trough. D) Recovery. Show Answer Correct Answer: C) Trough. 11. In the real business cycle model, business cycles are A) Efficient and do not represent lost output. B) Driven by technology shocks. C) Occur when markets clear. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Which phase would firms be rehiring workers they laid off A) Peak. B) Depression. C) Recovery. D) Recession. Show Answer Correct Answer: C) Recovery. 13. During the economic recession of 2008, what happened to the unemployment rate? A) It went up. B) It went down. C) It was not affected. D) None of above. Show Answer Correct Answer: A) It went up. 14. Dean graduated from college in May, but in July had still not found employment. Dean is experiencing ..... A) Frictional unemployment. B) Cyclical unemployment. C) Seasonal unemployment. D) Structural unemployment. Show Answer Correct Answer: A) Frictional unemployment. 15. By looking at past GDP numbers, we can identify a A) Economic contraction. B) Economic expansion. C) Recession. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Which of the following does NOT contribute to the standard of living? A) Income. B) Education. C) Housing quality. D) Circular flow. Show Answer Correct Answer: D) Circular flow. 17. Business cycles are more stable if A) The government consistently passes stimulus money. B) The government raises taxes. C) Both banks and government set policies to meet the three economic goals. D) None of above. Show Answer Correct Answer: C) Both banks and government set policies to meet the three economic goals. 18. The US economy adds a net 100, 000 jobs in October and the unemployment rate increases. How is this possible? A) More workers than 100, 000 become discouraged. B) More than 100, 000 workers go from being discouraged to actively looking. C) More than 100, 000 workers leave the Labor Force. D) None of above. Show Answer Correct Answer: B) More than 100, 000 workers go from being discouraged to actively looking. 19. GDP per capita is found by dividing a country's GDP by it's A) Population. B) Average birth rates. C) Number of households. D) None of above. Show Answer Correct Answer: A) Population. 20. Where would you most likely have the most use of government welfare A) Peak. B) Depression. C) Recovery. D) Recession. Show Answer Correct Answer: B) Depression. ← PreviousNext →Related QuizzesMacroeconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business 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