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

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

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

Revolt · Accepted Answer

Trough

Question 4

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

Revolt · Accepted Answer

a recession.

Question 5

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

Revolt · Accepted Answer

by increasing unemployment benefits

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

best

Revolt · Accepted Answer

The recession accelerates.

Question 8

Which of the following conditions is most indicative of recovery?

Revolt · Accepted Answer

The economy is growing again.

Question 9

best

Revolt · Accepted Answer

macroeconomic trends

The Business Cycle Answers

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