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Questions and Answers
What is the definition of the Business Cycle?
What is the definition of the Business Cycle?
- A periodic fluctuation in economic activity measured by change in Real GDP (correct)
- A one-time increase in economic growth followed by stability
- A continuous upward trend in economic activities
- An irregular trend of decreasing economic activities over time
What phase of the Business Cycle is characterized by the lowest level of production and employment?
What phase of the Business Cycle is characterized by the lowest level of production and employment?
- Trough/Depression (correct)
- Peak/Boom/Prosperity
- Expansion/Boom/Recovery
- Contraction/Recession/Downswing
Which phase of the Business Cycle follows the Expansion Phase?
Which phase of the Business Cycle follows the Expansion Phase?
- Peak/Boom/Prosperity (correct)
- Expansion/Boom/Recovery
- Trough/Depression
- Contraction/Recession/Downswing
What does the broken line in the figure representing the four phases of the business cycle signify?
What does the broken line in the figure representing the four phases of the business cycle signify?
In which phase of the Business Cycle does the Contraction Phase set in?
In which phase of the Business Cycle does the Contraction Phase set in?
Which phase of the Business Cycle signifies a period of slowing growth and even failing growth?
Which phase of the Business Cycle signifies a period of slowing growth and even failing growth?
What happens after the economy reaches the Peak phase in the Business Cycle?
What happens after the economy reaches the Peak phase in the Business Cycle?
What differentiates the Trough phase from other phases of the Business Cycle?
What differentiates the Trough phase from other phases of the Business Cycle?
What follows a period of prosperity in the Business Cycle?
What follows a period of prosperity in the Business Cycle?
What is one distinct characteristic of a business cycle that differentiates it from linear growth trends?
What is one distinct characteristic of a business cycle that differentiates it from linear growth trends?
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