Bust And Boom

Question 1

What are the 5 stages of the economic cycle?

Answer 1

Recovery phase
Early upswing phase
Late upswing phase
Economy slows/enters recession
Recession

Question 2

Name 3 things that will occur when a country is in the recovery phase

Answer 2

Any 3 from the below:
Inflation begins to fall
Confidence picks up
Stock market will begin to rise
Property prices will be bottoming
Short rates start falling
Bond yields will be bottoming

Question 3

Name 3 things that will occur when a country is in the early upswing phase?

Answer 3

Any 3 from the below:
Confidence will begin to increase
Inflation remains low
Healthy economic growth
Short rates at neutral
Bond yields stable
Stock market strong
Commodities strong
Property prices picking up

Question 4

Name 3 things that will occur when a country’s economy slows and starts to enter recession

Answer 4

Any 3 from the below:
Confidence suddenly drops
Inflation continues to rise
Inventory correction begins
Short rates peak
Bond yields peak
Stock market starts to fall
Commodities start to fall
Property prices peak

Question 5

Name 3 things that will happen when a country’s economy is in recession

Answer 5

Any 3 from the below:
Confidence weak
Inflation peaks
Production starts to fall
Short rates drop
Bond yields drop
Stock market at all time low
Commodities weak
Property prices weak

Question 6

What stage is the UK currently at?

Answer 6

Between 5 and 6

Question 7

What stage is the UK currently at?

Answer 7

Between 5 and 6