The Business Cycle

Question 1

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 2

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

Revolt · Accepted Answer

a recession.

Question 3

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 4

best

Revolt · Accepted Answer

Consumers spend less, causing worker layoffs.

Question 5

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 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

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

Revolt · Accepted Answer

by increasing unemployment benefits

Question 8

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

Revolt · Accepted Answer

Demand greatly decreases.

Question 9

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.

Question 10

best

Revolt · Accepted Answer

macroeconomic trends

The Business Cycle Answers

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