Download Business Cycle Practice

BUSINESS CYCLE REVIEW PRACTICE
Name__________________________
Answer the following questions in the space provided
_____ 1. In a typical business cycle, what phase is a period of economic growth and recovery?
a. contraction
c. expansion
b. peak
d. trough
_____ 2. The lowest point in an economic contraction is called
a. a peak.
b. a trough.
c.
d.
a recession.
a depression.
3. Match the terms to the definitions and label it on the graph below
.
_____ widespread and severe recession
a. expansion
_____ decline and contraction
b. trough
_____ overall even growth
c. depression
_____ marks the end of recession, lowest point
d. trend line
_____ marks the end of expansion, highest point
e. recession
_____ growth and recovery
f. peak
______ 4.The highest point in an economic expansion is called
a. a peak.
b. a trough.
c.
d.
a recession.
a depression.
______ 5. Over a 3 year period, the nation of Alta has experienced a steep decline in the unemployment rate and a rise
in real GDP. Alta appears to be
A. In a recession/contraction
B. At the peak
C. At the trough
D. In an expansion/recovery
6. Where on the business cycle would gross domestic product be decreasing? Why?