Unit 3 Business Cycle

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

The business cycle directly measures which economic goal?

• full employment

• growth

• price stability

Which of the following is NOT a Phase?

• Expansion

• Contraction

• Neutral

• Peak

• Trough

Which of the following is a recession, or contraction?

• A

• B

• C

• D

Which of the following is a peak?

• A

• B

• C

• D

Which of the following is an expansion, or recovery?

• A

• B

• C

• D

Which of the following is a trough?

• A

• B

• C

• D

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

Check all that apply.

Which of the following goal(s) is mostly likely to be in trouble at the peak?

• equity

• full employment

• growth

• price stability

Check all that apply.

Which of the following goal(s) are strong at the peak?

• equity

• full employment

• growth

• price stability