Econ 102 - Principles of Macroeconomics » Fall 2022 » Business Cycle Quiz

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
A new technological innovation would increase
A.   the labor force.
B.   labor productivity.
C.   labor hours worked.
D.   population growth.
Question #2
A recession is defined by economists as a time period when:
A.   real GDP has declined for at least two quarters
B.   business profits are falling
C.   consumer confidence is low
D.   unemployment is rising
Question #3
According to economists, one of the signs of an unhealthy economy is a(n)
A.   declining real GDP.
B.   increasing real GDP.
C.   declining unemployment.
D.   rising labor productivity.
Question #4
During the Great Depression which of the following was true?
A.   consumer confidence was euphoric
B.   the rate of investment was negative
C.   the rate of inflation was increasing
D.   business profits were growing
Question #5
Environmentalists worry that economic growth imposes costs on society. Among these costs are
A.   pollution.
B.   All of these are costs.
C.   crowding.
D.   waste disposal.
Question #6
Human Capital refers to.
A.   plant and equipment
B.   education, training and health of a labor force
C.   tools and machinery
D.   the ability of humans to make capital goods
Question #7
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.
A.   same, same
B.   less, less
C.   less, same
D.   more, same
Question #8
If the government chose to increase purchases (G) on education
A.   Labor productivity should decline
B.   Potential output should increase
C.   Potential output should decrease
D.   There will be no impact on output
Question #9
One basic way to boost the nation's growth rate is to
A.   increase wages paid to labor.
B.   reduce the population growth rate.
C.   accumulate less capital
D.   increase the rate of technical progress.
Question #10
One of the key factors that determine an economy's real GDP is labor productivity, which is a measure of
A.   total hours worked.
B.   labor force per hour.
C.   output per hour of work.
D.   input per hour worked.
Question #11
Potential GDP is an estimate of the economy's ability to produce goods and services if the
A.   federal budget is balanced.
B.   trade balance is zero.
C.   labor force is fully employed.
D.   price level is stable.
Question #12
The phase of a business cycle during which real GDP reaches it's minimum level is the:
A.   depression
B.   recession
C.   recovery
D.   trough
Question #13
Which of the following statements is true?
A.   Full employment exists in an economy when the unemployment rate equals the sum of frictional and cyclical unemployment rates.
B.   Generally during a prosperity period wages rise as unemployment falls.
C.   When unemployment is rising, then real GDP is rising.
D.   The four phases of the business cycle, in order, are peak, recovery, trough and recession.
Question #14
Which of the following indicators is a leading indicator?
A.   inflation
B.   interest rates
C.   unemployment
D.   business profits
Question #15
Which of the following indicators is a counter-cyclical indicator?
A.   unemployment
B.   business profits
C.   inflation
D.   interest rates

Need help with your exam preparation?

Existing Quiz Clients Login here