Econ 102 - Principles of Macroeconomics » Spring 2023 » Business Cycle Quiz

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

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