stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Business Cycles Flashcards | StudBud
Explore
/
Business Cycles
Business Cycles
9 terms
·
StudBud Administration
·
298 plays
Imported from external platform
Flashcards
9 cards
F
Practice quiz
P
Host live
L
Questions
9
Answers
1
During expansion, what happens?
real GDP grows; prices fall
real GDP grows; unemployment falls
real GDP grows; unemployment grows
real GDP declines; unemployment declines
2
Real GDP _________ during ________ .
declines; contraction
declines; expansion
3
On the image, the 2 represents __________ and the 4 represents ___________.
peak, trough
contraction, expansion
expansion, contraction
trough, peak
4
When prices levels increase AND real GDP declines
depression
none of the above
stagflation
recession
5
Real GDP stops rising at this point in the business cycle.
Contractionary Phase
Trough
Peak
Expansionary Phase
6
If more people invest in businesses (stock market,start-ups), which of the following is likely?
None of the above
Expansion of the Economy
Contraction of the Economy
Move toward a trough
7
Two or more quarters of declining real GDP is called a __________.
expansion
stagflation
depression
recession
8
The y axis of the business cycle is _________.
Inflation
Real GDP
Time
Nominal GDP
9
Which of the following will lead to or maintain a contractionary phase of the economy?
high interest rates
Increased business investment
high expectations of future economic conditions
Low interest rates
