The Business Cycle

Question 1

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

Revolt · Accepted Answer

a recession.

Question 2

Which statement best describes why it is difficult to sell a home during a recession?

Revolt · Accepted Answer

Demand greatly decreases.

Question 3

best

Revolt · Accepted Answer

macroeconomic trends

Question 4

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 5

best

Revolt · Accepted Answer

The recession accelerates.

Question 6

There are four stages in an economic recovery. 1. increased production2. rising demand (occurs twice)3. increased hiring In which order do these stages occur?

Revolt · Accepted Answer

2, 1, 3, 2

Question 7

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 8

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

Revolt · Accepted Answer

by increasing unemployment benefits

Question 9

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 10

Read a passage from a speech given by President Barack Obama.Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit . . . And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits.–President Barack Obama, February 4, 2009

Revolt · Accepted Answer

It describes government measures to stimulate demand and bring about a recovery.

The Business Cycle Answers

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