What term describes a period of macroeconomic expansion followed by a period of contraction?

• Inflation

• Business Cycle

• Economic Decline

• Recession

What is a period of economic decline called?

• Expansion

• Contraction

• Peak

• Growth

In a business cycle, what is the area from the peak down to the trough known as?

• Expansion

• Contraction

• Peak

• Growth

What is a period of economic growth called?

• Contraction

• Expansion

• Recession

• Decline

Which of the following is an example of a lagging economic indicator?

• Stock market

• Consumer prices

• Building permits

• Manufacturing orders

What type of economic indicator predicts an upcoming contraction or expansion in the business cycle?

• Lagging Economic Indicator

• Leading Economic Indicator

• Concurrent Indicator

• Historical Indicator

Which of the following is an example of a leading economic indicator?

• Unpaid loans

• Stock market

• Consumer prices

• Unemployment

What is the period called when economic growth exceeds the previous peak in the business cycle?

• Recession

• Recovery

• Prosperity

• Trough

Which period in the business cycle is characterized by a decline in total production lasting two consecutive quarters?

• Prosperity

• Recession

• Recovery

• Trough

What is the formula for calculating Gross Domestic Product (GDP)?

• GDP = C + I + G + (X - M)

• GDP = C + I + G + M

• GDP = C + G + (X - I)

• GDP = I + G + (M - X)