The Business Cycle

Question 1

Why might buying a home during a recession be a good decision for some consumers? Choose three answers.Housing prices are down.It is easier to get a mortgage.Less demand means more options for buyers.Less demand means less competition with other buyers.Fewer houses are on the market.

Revolt · Accepted Answer

Housing prices are down.; Less demand means more options for buyers.; Less demand means less competition with other buyers.

Question 2

best

Revolt · Accepted Answer

The recession accelerates.

Question 3

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 4

Which of the following conditions is most indicative of recovery?

Revolt · Accepted Answer

The economy is growing again.

Question 5

During a recession, what is one way governments try to encourage growth?

Revolt · Accepted Answer

by increasing unemployment benefits

Question 6

best

Revolt · Accepted Answer

Car dealerships cannot sell their stock.

Question 7

Which event most likely explains renewed demand in a recovery period?

Revolt · Accepted Answer

Economic policy renews consumer confidence and demand.

Question 8

There are five stages in a recession. 1. job loss2. falling production3. falling demand (occurs twice)4. peak production In which order do these stages occur?

Revolt · Accepted Answer

4, 3, 2, 1, 3

Question 9

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 10

best

Revolt · Accepted Answer

Consumers spend less, causing worker layoffs.

The Business Cycle Answers

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