Business Cycle Revision

When was the last recession in Australia? (Hint: remember the worksheet from yesterday.)

• 2018 - 2019

• Early 2020 - mid-2020

• 2022 - 2023

• Late 2014

The point on the business cycle where GDP stops increasing & is the highest point is called

• Upturn

• downturn

• Peak

• Trough

Two consecutive quarters of negative GDP growth

• recession

• peak

• upturn

• downturn

The business cycle measures:

• Fluctuations in economic activity over time.
• The distribution of wealth among citizens.
• The level of unemployment at any given time.
• The total amount of money in circulation.

The equation for GDP is:

• GDP = C + I + G + (X - M)
• GDP = C + I - G + (X + M)
• GDP = C - I + G + (X - M)
• GDP = C + I + G + M

A downturn and recession are the same

• True

• False

A Trough is a phase in the business cycle where economic activity has reached a minimum & heading towards improvement

• True

• False

Upturn is

• improvement in economic activity
• decline in economic activity

• highest point of economic activity q

• lowest point of economic activity

Australia economic growth is for end of 2024..

• 2.5%
• 2%

• 1.8% (below

• 3%

The first test is...

• Friday 21st Feb (All Topic 1 SA1 Macro Models)

• What test?