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- 1. Multiple Choice
Which of the following is a slump?
A
B
C
D
- 2. Multiple Choice
Which of the following is a boom?
A
B
C
D
- 3. Multiple Choice
The business cycle is made up of how many phases?
5
4
3
2
- 4. Multiple Choice
Which of the following is NOT a recovery's characteristic?
Consumers begin to increase spending
rapidly rising unemployment
Business feel a little more confident and start to invest again
Consumers begin to increase spending
- 5. Multiple Choice
An economy is officially considered to be in recession after two consecutive (continuous) quarters of falling GDP.
True
False
- 6. Multiple Choice
Which of the following characteristics of the business cycle that describing the boom phase?
High levels of consumer spending, business confidence, profits and investment
Space capacity increases + rising unemployment.
low unemployment
Business feel a little more confident and start to invest again
- 7. Multiple Choice
Which of the following characteristics of the business cycle that describing the slump phase?
Very weak consumer spending and business investment
Fallings levels of consumer spending
Consumers begin to increase spending
Rapidly rising unemployement
- 8. Multiple Choice
The more money people invest in businesses,
the more money businesses have to grow. Therefore, investment affects the business cycle.
TRUE
FALSE
- 9. Multiple Choice
If GDP of a country is decreasing, this can indicate that overall spending on goods and services will decrease for businesses.
TRUE
FALSE
- 10. Multiple Choice
If sales rise, businesses may reduce the workforce to help reduce their overall costs.
TRUE
FALSE
- 11. Multiple Choice
During the boom phase, a business may find it difficult to recruit employees and businesses may react by increasing wages or offering additional benefits.
TRUE
FALSE
- 12. Multiple Choice
What is happening to GDP during the slump phase??
Increasing
Decreasing
Highest
Lowest
- 13. Multiple Choice
What is happening to Unemployment during the boom phase?
Increasing
Decreasing
Highest
Lowest
- 14. Multiple Choice
When an economy is in the contraction (recession) phase of the business cycle, the government will likely
increase government spending to stimulate economic growth
increase investment in training programs to assist unemployed people to find work
both a & b
- 15. Multiple Choice
This phase is characterized by a slightly rising GDP or things start to get better but may be marked by unemployment so there is still the great danger GDP will fall again.
Recession
Recovery
Boom
Slump
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