Recession and Business Cycles

A normal Business Cycle has how many parts?

• 1

• 2

• 3

• 4

During a Recession you can expect employers to ___________________________.

• hire more employees

• call banks for money

• lay off employees

• offer stock options

One way the government helps overcome Recession is by ______________________.

• offering tax credits

• lowering interest rates

• provide relief checks

• all of the above

Recessions can occur as a result of human fear?

• True

• False

A big part of staying away from Recession in the economy is by the Federal Reserve building __________________ amongst consumers.

• fear

• confidence

• hope

• jealousy

Based on the graph, in which of these years would you have had the toughest time finding work?

• 2001

• 2008

• 2010

• 2005

In most states, laid-off workers are eligible for 26 weeks of unemployment insurance. During recessions, that period is often extended to influence the behavior of:

• manufacturers

• retailers

• stock brokers

• consumers

Which of the following typically rises during a recession?

• average income

• unemployment

• production

• profits

How does the government typically handle taxes and interest rates during a recession?

• It raises taxes and lowers interest rates

• It lowers both taxes and interest rates

• It lowers taxes and raises interest rates

• It raises both taxes and interest rates

If recessions spread like a sickness, unemployment insurance is most like:

• a sick day

• a cough

• a thermometer

• medicine