Download Unit 4—Business Cycles

Unit 4—Business Cycles
Review made by students.
Growth lessens the burden of




A.
B.
C.
D.
Scarcity
The recession
Inflation
The government
What was the unemployment rate
during the Great Depression?




A.
B.
C.
D.
70%
5%
25%
50%
Which of the following is not a
cause of inflation?




A.
B.
C.
D.
Demand-pull
Supply-side
Cost-push
Stock-buy
How long would it take for prices to
double if the inflation rate is 7%?




A.
B.
C.
D.
7 years
6 years
10 years
20 years
Discouraged workers are not




A.
B.
C.
D.
Necessarily seeking work
Correctly seeking work
Actively seeking work
Willingly seeking work
Growth of a nation is important
because
 A. It means more material will be in
abundance
 B. It sets a standard for other
nations to strive for
 C. It lessens the scarcity burden
 D. Both A and C
What are the types of
unemployment?
 A. Seasonal, cyclical, detrimental and
beneficial.
 B. Real and estimated
 C. Seasonal, cyclical, structural and
frictional
 D. There are no types of
unemployment. There is just
inflation.
The discouraged
 A. Understate the unemployment
rate
 B. Overstate the unemployment rate
 C. Are counted as officially
unemployed
 D. Are structurally unemployed
Which of these is not a cause of
inflation?
 A. Too much money chasing too few
goods.
 B. Not enough supply of goods and
services.
 C. Too many people being employed.
 D. None of these
The peak in the business cycle is
 A. The point where output starts to
decline.
 B. When business activity reaches a
temporary max.
 C. The beginning of a recession.
 D. All of the above.
Jerry works as Santa in the mall
every winter. The is an example of




A.
B.
C.
D.
Frictional unemployment
Structural unemployment
Seasonal unemployment
Cyclical unemployment
Which word best describes the
lowest point of a recession?




A.
B.
C.
D.
Peak
Trough
Median
High point
Wage inflation is caused by




A.
B.
C.
D.
Too many unions
Too many employed
Too many politicians
Too few producers
What is the Rule of 70?
 A. Approximate number of years to
double the rGDP.
 B. A rule that states rGDP is always
70.
 C. A rule that has nothing to do with
economics.
 D. None of the above.
All of the following are unequal
burdens (of unemployment)
except:




A.
B.
C.
D.
Occupation
Age
Race
Inflation
The natural rate of unemployment
can be found by adding:




A.
B.
C.
D.
Cyclical and structural
Structural and seasonal
Frictional and cyclical
Structural and frictional
You have just graduated from college
and are looking for your first real job.
What type of unemployment?




A.
B.
C.
D.
Cyclical
Seasonal
Frictional
Structural
When the country goes in the
recessionary phase
 A. Output and income increase
 B. Output and income level out
 C. Must be a decrease in rGDP for
two cycles
 D. As contraction continues,
inflationary pressures increase
If the NRU is 4% and actual
unemployment is 8%, what is the
GDP gap?




A. 4%
B. 8%
C. 16%
D. 32%
A general rising of the level of
prices




A.
B.
C.
D.
Deflation
Recession
Inflation
Accumulation
The rate of growth record shows that
rGDP has grown ? per year since 1950
and per capita ? per year.




A.
B.
C.
D.
5% and 6%
2% and 3.1%
4.2% and 1.9%
3.1% and 2%
During a recession
 A. Inflationary pressure subsides
 B. Output increases towards full
employment
 C. Inflation accelerates
 D. There is aggregate spending
Political cuts in supply could cause




A. Output to rise
B. Employment to rise
C. Unemployment to rise
D. Output and employment to
decline
The business cycles graph includes




A.
B.
C.
D.
Peak
Inflation point
Crest
# of waves
The rule of 70
 A. Works for the doubling time of
anything
 B. Doesn’t exist
 C. Shows the percentage of national
bankruptcy
 D. Doesn’t apply to inflation
When output increases towards full
employment




A.
B.
C.
D.
Expansionary / recovery
Expansionary / recession
Expository / recovery
Expository / recession
A secretary who only knows how to
use a typewriter is unemployed.
What type of unemployment is it?




A.
B.
C.
D.
Frictional
Seasonal
Structural
Cyclical
What is one of the main sources of
growth?
 A. Gov’t threatens a tax if a company
does not reach a productivity level.
 B. A company increases their
productivity of existing inputs.
 C. Gov’t brings prices down so
consumers will spend more of their
money.
 D. A company starts underground
selling.
Economically, a peak is
 A. Top of the mountain
 B. Where business reaches a
maximum
 C. Point at which output declines
 D. Both B and C
A DEEP trough is




A.
B.
C.
D.
A recession
A “bump in the road”
Cyclical fluctuation
A depression
How long does a recession typically
last?




A.
B.
C.
D.
5 to 6 years
12 to 18 months
6 to 12 weeks
18 to 25 months
Which TWO races are usually
affected by unemployment the
most?




A. Hispanic
B. White
C. Black
D. Asian
Too much money chasing too few
goods




A.
B.
C.
D.
Cost-push
Supply-side
Demand-pull
Cyclical fluctuations
Unemployment/labor force X 100




A.
B.
C.
D.
Inflation rate
Full efficiency
Unemployment rate
rGDP
Growth is based on




A.
B.
C.
D.
Increase in nGDP
Increase in nGDP per capita
Increase in rGDP per capita
China’s lead based paint
A business cycle is measured from




A.
B.
C.
D.
Peak to trough
Trough to trough
Peak to recession
Peak to peak
What decreases more during a
recession?




A.
B.
C.
D.
Durable goods
Nondurable goods
Both
None of the above
Okun’s law measures the difference
between




A.
B.
C.
D.
rGDP and nGDP
Actual GDP and potential GDP
GDP and NDP
Negative GDP and positive GDP