This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which phase of the Business Cycle includes the economy slowing down? A) Expansion. B) Recession. C) Depression. D) Recovery. Show Answer Correct Answer: B) Recession. 2. Macroeconomics approaches the study of economics from the viewpoints of A) Individual firms. B) Individual consumers. C) Government units. D) The entire economy. Show Answer Correct Answer: D) The entire economy. 3. When GDP rises faster than the long-run trend the economy is experiencing- A) Recession. B) Expansion. C) Recovery. D) None of above. Show Answer Correct Answer: B) Expansion. 4. Inflation is the highest in which of the following phases? A) Peak. B) Expansion. C) Recession. D) Trough. Show Answer Correct Answer: A) Peak. 5. Inflationary pressures are highest in the ..... stage of the business cycle. A) Early. B) Mid. C) Late. D) Recession. Show Answer Correct Answer: C) Late. 6. Read the following headline and choose the condition that correspond with the business cycle.GDP declines for four consecutive months, causing the Federal Reserve to lower interest rates. A) Peak. B) Contractionary. C) Trough. D) Growth. Show Answer Correct Answer: B) Contractionary. 7. One of the most important tools used to measure the health of an economy is A) Inflations. B) Supply and demand. C) Equilibrium. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 8. What is the formula for calculating GDP if using the income approach? A) Consumption + investment + government spending + net exports. B) Wages + interest + rent + profit. C) Add up all values added to the good. D) None of these. Show Answer Correct Answer: B) Wages + interest + rent + profit. 9. What is the lowest level of a recession? A) Peak. B) Pit. C) Resolution. D) Trough. Show Answer Correct Answer: D) Trough. 10. Real GDP is obtained by A) Nominal GDP minus GDP deflator. B) Nominal GDP divided by GDP deflator multiplied by 100. C) Nominal GDP multiplied by price level. D) Nominal GDP divided by CPI. Show Answer Correct Answer: B) Nominal GDP divided by GDP deflator multiplied by 100. 11. What are both nominal and real GDP used for? A) Explaining the national budget to citizens. B) Showing the public how taxes affect the nation. C) Comparing our economy to the economies of other countries. D) Comparing the result of expenditures and income. Show Answer Correct Answer: D) Comparing the result of expenditures and income. 12. Who first identified cyclical patterns in the economy and created what is often referred to as "the business cycle" ? A) Warren Buffett. B) Steve Jobs. C) Clemente Juglar. D) George Washington. Show Answer Correct Answer: C) Clemente Juglar. 13. Where would you most likely find the highest rates of inflation A) Depression. B) Recession. C) Peak. D) Recovery. Show Answer Correct Answer: C) Peak. 14. Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment? A) Structural. B) Seasonal. C) Frictional. D) Cyclical. Show Answer Correct Answer: B) Seasonal. 15. The unemployment rate equals the number of persons: A) Unemployed divided by the number employed. B) Unemployed divided by the number in the labor force. C) Unemployed divided by the population age 16 and over. D) Not working divided by the population age 16 and over. Show Answer Correct Answer: B) Unemployed divided by the number in the labor force. 16. If unemployment is high, how will the economy be affected? A) Government spending will decrease. B) Consumer spending will decrease. C) Consumer spending will increase. D) Business investments will increase. Show Answer Correct Answer: B) Consumer spending will decrease. 17. Which of the following can lead to a "bust" or downfall in the business cycle? A) High inflation. B) Scarcity of resources. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 18. This inflation results from an inefficient market or structure of the economy. A) Cost push inflation. B) Demand pull inflation. C) Divisional inflation. D) Structural inflation. Show Answer Correct Answer: D) Structural inflation. 19. In the contraction phase, businesses will: A) Notice that things are slowing down a bit. B) Notice that things are getting busier. C) Be hiring more staff. D) Be buying new equipment. Show Answer Correct Answer: A) Notice that things are slowing down a bit. 20. During the expansion-phase, people will: A) Earn more and consume more. B) Buy new goods for their house. C) Eat out more. D) All of these. Show Answer Correct Answer: D) All of these. ← PreviousNext →Related QuizzesMacroeconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 8Business Cycles Quiz 9Business Cycles Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books