The Business Cycle / The Trade Cycle

Question 1

What is the business/trade cycle?

Answer 1

Economic fluctuations going from periods of High Growth (expansion) and Low or even negative growth (contraction)

Question 2

What is the most common definition for a recession?

Answer 2

Two or more consecutive quarters of negative economic growth.

Question 3

What are the 4 points on the business cycle?

Answer 3

1. The boom / Peak
2. The Down turn / Recession
3. The slump / Depression
4. The upturn / Recovery

Question 4

Fluctuation up and down on the business cycle show a change in ….?

Answer 4

The rate of economic growth