The Business Cycle

Question 1

best

Revolt · Accepted Answer

Consumers spend less, causing worker layoffs.

Question 2

best

Revolt · Accepted Answer

macroeconomic trends

Question 3

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 4

best

Revolt · Accepted Answer

Car dealerships cannot sell their stock.

Question 5

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

Revolt · Accepted Answer

Demand greatly decreases.

Question 6

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

Revolt · Accepted Answer

by increasing unemployment benefits

Question 7

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

Question 8

Which of the following conditions is most indicative of recovery?

Revolt · Accepted Answer

The economy is growing again.

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

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

Revolt · Accepted Answer

a recession.

The Business Cycle Answers