The Business Cycle

Question 1

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

Revolt · Accepted Answer

by increasing unemployment benefits

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

macroeconomic trends

Question 4

best

Revolt · Accepted Answer

Consumers spend less, causing worker layoffs.

Question 5

Income reaches the highest level at the point of the business cycle.

Question 6

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 7

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

Revolt · Accepted Answer

Trough

Question 8

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 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

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.

The Business Cycle Answers

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