The Business Cycle

Question 1

GDP has started to increase

Answer 1

early expansion

Question 2

growth is peaking

Answer 2

mid expansion

Question 3

growth is moderating

Answer 3

late expansion

Question 4

falling activity

Answer 4

contraction

Question 5

credit is starting to grow

Answer 5

early expansion

Question 6

credit is experiencing strong growth

Answer 6

mid expansion

Question 7

credit is starting to tighten

Answer 7

late expansion

Question 8

credit has dried up

Answer 8

contraction

Question 9

profits have declined

Answer 9

contraction

Question 10

profits are growing rapidly

Answer 10

early expansion

Question 11

earnings are under pressure

Answer 11

late expansion

Question 12

profit growth is currently peaking

Answer 12

mid expansion

Question 13

policy is contractionary

Answer 13

late expansion

Question 14

policy is neutral

Answer 14

mid expansion

Question 15

policy has eased

Answer 15

contraction

Question 16

policy is stimulative

Answer 16

early expansion

Question 17

inventories are low and sales are improving

Answer 17

early expansion

Question 18

inventories and sales are growing; equilibrium has been achieved

Answer 18

mid expansion

Question 19

inventories are growing and sales growth is falling

Answer 19

late expansion

Question 20

inventories and sales are falling

Answer 20

contraction