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Business Cycle Flashcards | StudBud
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Business Cycle
Business Cycle
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Flashcards
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Questions
12
Answers
1
When would we see government or Fed intervention to stimulate the economy?
Peak
Trough
2
The Fed and Government prefers
Steady economic growth
Wild fluctuations in the business cycle
Does not care the market will correct itself
3
When would we see Fed intervention to slow down the economy?
Peak
Trough
4
High unemployment rate and many business failures would occur in ___
Contraction
Trough
Expansion
Peak
5
Which of the following is NOT a phase of the business cycle?
Trough
Unemployment
Peak
Contraction
6
Which of the following represents the correct sequence of phases of the Business Cycle?
Peak, Contraction, Trough, Expansion
Peak, Contraction, Expansion, Trough
Peak, Expansion, Contraction, Trough
Peak, Trough, Expansion, Contraction
7
During the ___ phase, consumer demand is high and the fear of inflation exists.
Trough
Expansion
Contraction
Peak
8
If the unemployment rate is high, the economy is doing
Unemployment tells us nothing about the state of the economy
Poorly
Well
9
Demand for consumer goods would begin to rise during the ___ period.
Contraction
Peak
Expansion
Trough
10
What is the one thing that affects the business cycle, but we cannot measure or often predict?
GDP
CPI
Emotion
Stock market trends
11
High demand for consumer goods would lead to inflation during the __ phase.
Peak
Trough
Expansion
Contraction
12
The money supply controlled by the Fed really relates to
How much we have in savings
The amount of cash in circualtion
The availability of credit