label the phases of the business cycle\nmultiple choice:\n1. the business cycle relates to the up and down…

label the phases of the business cycle\nmultiple choice:\n1. the business cycle relates to the up and down changes in\na. price b. economic activity c. production\n2. labor tends to be the more productive during\na. prosperity b. depression c. recession\n3. business cycles\na. are the same in length. b. vary in length.\n4. the recovery period is one of increased\na. expansion b. unemployment c. both a and b.\n5. higher interest rates tend to\na. slow down business activity.\nb. speed up business activity.\nc. increase spending\nmatch the economic situations with the correct phase of the business cycle:\na. prosperity/peak\nb. recession/contraction\nc. depression\nd. recovery/expansion\n6. ____ consumers tend to save more of their money; retailers cutback on wholesale orders.\n7. ____ production is unable to keep up with expanded consumer demand.\n8. ____ business surpluses accumulate because consumer demand has fallen off.\n9. ____ depression prices lead to increased demand for certain goods and services.\n10. ____ consumers begin to cut back on spending for luxuries such as entertainment.\n11. ____ there is a boom in vacation real - estate investments.\n12. ____ car dealers lower prices and offer rebates to attract customers.\n13. ____ a large number of major corporations and banks go out of business.\n14. ____ new high - tech businesses begin hiring many of the unemployed.\n15. ____ the number of banks loaning money to prospective homeowners reaches an all time high.

label the phases of the business cycle\nmultiple choice:\n1. the business cycle relates to the up and down changes in\na. price b. economic activity c. production\n2. labor tends to be the more productive during\na. prosperity b. depression c. recession\n3. business cycles\na. are the same in length. b. vary in length.\n4. the recovery period is one of increased\na. expansion b. unemployment c. both a and b.\n5. higher interest rates tend to\na. slow down business activity.\nb. speed up business activity.\nc. increase spending\nmatch the economic situations with the correct phase of the business cycle:\na. prosperity/peak\nb. recession/contraction\nc. depression\nd. recovery/expansion\n6. ____ consumers tend to save more of their money; retailers cutback on wholesale orders.\n7. ____ production is unable to keep up with expanded consumer demand.\n8. ____ business surpluses accumulate because consumer demand has fallen off.\n9. ____ depression prices lead to increased demand for certain goods and services.\n10. ____ consumers begin to cut back on spending for luxuries such as entertainment.\n11. ____ there is a boom in vacation real - estate investments.\n12. ____ car dealers lower prices and offer rebates to attract customers.\n13. ____ a large number of major corporations and banks go out of business.\n14. ____ new high - tech businesses begin hiring many of the unemployed.\n15. ____ the number of banks loaning money to prospective homeowners reaches an all time high.

Answer

Brief Explanations:

  1. The business cycle reflects changes in economic activity.
  2. Productivity is higher during prosperity.
  3. Business cycles vary in length.
  4. Recovery is marked by expansion.
  5. Higher interest rates slow business activity.
  6. When consumers save more and retailers cut back, it's a recession/contraction.
  7. Production not keeping up with demand is prosperity/peak.
  8. Business surpluses due to falling demand is recession/contraction.
  9. Depression - related increased demand is depression.
  10. Cutting luxury spending is recession/contraction.
  11. Vacation real - estate boom is prosperity/peak.
  12. Car dealers cutting prices is recession/contraction.
  13. Many major corporations and banks going out of business is depression.
  14. New businesses hiring unemployed is recovery/expansion.
  15. High bank lending to homeowners is prosperity/peak.

Answer:

  1. b. Economic activity
  2. a. Prosperity
  3. b. vary in length.
  4. a. Expansion
  5. a. slow down business activity.
  6. B. Recession/Contraction
  7. A. Prosperity/Peak
  8. B. Recession/Contraction
  9. C. Depression
  10. B. Recession/Contraction
  11. A. Prosperity/Peak
  12. B. Recession/Contraction
  13. C. Depression
  14. D. Recovery/Expansion
  15. A. Prosperity/Peak