The Business Cycle and Investment Quiz

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Questions and Answers

Which phase of the business cycle is characterized by rising unemployment and falling economic output?

  • Expansion
  • Peak
  • Trough
  • Contraction (correct)

According to INEGI, investment is the sum of

  • Inventory and Investment (correct)
  • Investment only
  • Inventory and Imports
  • Imports and Investment

Which one represents that firms are producing more than what is demanded?

  • Y < AD
  • Y < AD - IU
  • IU = Y - AD
  • Y > AD (correct)

Which one represents that firms have a reduction in inventory?

<p>Y &lt; AD (C)</p> Signup and view all the answers

Which of the following is NOT considered one of the three primary macroeconomic goals?

<p>Stable exchange rates (A)</p> Signup and view all the answers

According to the business cycle, what happens when a population grows?

<p>An increase in productivity because each person starts producing more goods and services (C)</p> Signup and view all the answers

What does the aggregate demand curve show?

<p>The quantity of goods and services that households, firms, governments, and customers abroad want to buy at each price level (C)</p> Signup and view all the answers

Which concept describes better the price inflation?

<p>Refers to increase in the cost of fixed baskets (C)</p> Signup and view all the answers

Which phase of the business cycle is characterized by rising unemployment and falling economic output?

<p>Contraction (D)</p> Signup and view all the answers

What does the measure of inequality between men and women across different aspects like health and education represent?

<p>Gender gap (B)</p> Signup and view all the answers

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