The Business Cycle
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by Daniel Canace
| 5 Questions
Note from the author:
The Business Cycle B184 Business Ex
Watch the following video:
1
1
Economists recognize that the economy doesn't grow smoothly, but in regular patterns. They refer to this as:
the circular flow of economic activity
the Business Cycle
the Classical Model
the Keynesian Cycle
2
1
The business cycle has two phases and two turning points, as follows
recession, trough, advance, peak
expansion, intermediate 1, recession, intermediate 2
expansion, peak, reversal, prosperity
expansion, peak, recession, trough
3
1
During a recession, economic output
contracts for at least three years in a row
contracts for one month
contracts for at least six months
contracts for at least two years minimum
4
1
At the peak of a business cycle,
real GDP is shrinking, prices are rising, and unemployment is low
real GDP is growing, prices are rising, and unemployment is low.
real GDP is growing, prices are falling, and unemployment is low.
real GDP is shrinking, prices are falling, and unemployment is low.
5
1
According to the chart below , what was the unemployment rate during the peak of the business cycle?
zoom_in

3%
5%
4%
7%
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