2.5.3 Trade (business) Cycle

Question 1

What would you expect growth rates to be like in a boom?

Answer 1

high growth rates

Question 2

What would you expect unemployment rates to be like in a boom?

Answer 2

low unemployment rates

Question 3

What would you expect levels of spare capacity to be like in a boom?

Answer 3

low levels

Question 4

Would you expect inflationary or deflationary pressures in a boom?

Answer 4

inflationary

Question 5

What would you expect consumer and business confidence levels to be like in a boom?

Answer 5

high

Question 6

What would you expect tax revenues to be like in a boom?

Answer 6

high

Question 7

What would you expect government spending on welfare to be like in a boom?

Answer 7

low

Question 8

Would you expect an improving or worsening budget balance during a boom?

Answer 8

improving

Question 9

How is a recession defined in the UK?

Answer 9

when GDP falls in to consecutive quarters

Question 10

What would you expect growth rates to be like in a recession?

Answer 10

low

Question 11

What would you expect unemployment rates to be like in a recession?

Answer 11

high

Question 12

What would you expect levels of spare capacity to be like in a recession?

Answer 12

high levels

Question 13

Would you expect inflationary or deflationary pressures in a recession?

Answer 13

deflationary

Question 14

What would you expect consumer and business confidence levels to be like in a recession?

Answer 14

low

Question 15

What would you expect tax revenues to be like in a recession?

Answer 15

low

Question 16

What would you expect government spending on welfare to be like in a recession?

Answer 16

high

Question 17

Would you expect an improving or worsening budget balance during a recession?

Answer 17

worsening