4.1 The Business Cycle

Question 1

best

Revolt · Accepted Answer

The recession accelerates.

Question 2

Which of the following is a characteristic of prosperity in the peak phase of the business cycle?

Revolt · Accepted Answer

high levels of production

Question 3

best

Revolt · Accepted Answer

Car dealerships cannot sell their stock.

Question 4

Which indicators do economists use to determine the state of the economy? Choose three answers.pricesimmigration levelsagricultural outputemployment levelsgross domestic product (GDP)

Revolt · Accepted Answer

prices; employment levels; gross domestic product (GDP)

Question 5

When production is very high but demand is very low, it can lead to

Revolt · Accepted Answer

a recession.

Question 6

The graphs show the US unemployment rate and the price of whole milk between 2006 and 2012.

Revolt · Accepted Answer

As unemployment rates rise, average prices fall.

Question 7

best

Revolt · Accepted Answer

Consumers spend less, causing worker layoffs.

Question 8

Which stage of the business cycle is an economy in when it reaches its low point?

Revolt · Accepted Answer

Trough

Question 9

This is a graph of the business cycle.Time is measured along the x-axis. What is measured along the y-axis?

Revolt · Accepted Answer

economic output

Question 10

Which of the following conditions is most indicative of recovery?

Revolt · Accepted Answer

The economy is growing again.

4.1 The Business Cycle Answers

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