Unit 12 - The Business Cycle Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Economics break the expansions phases into which two phases?

A
  1. Recovery - the period of growth from the trough to the prior peak
  2. Expansion - when the economy reaches the prior peak and continues to grow
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the four phases a business cycle goes through?

A
  1. Expansion
  2. Peak
  3. Contraction
  4. Trough
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The following characteristics are examples of which phase?

  1. Increased consumer demand for goods and services
  2. Increases in industrial production
  3. Rising stock prices
  4. Rising property values
  5. Increasing GDP
A

Expansion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The following characteristics are examples of which phase?

  1. Very low unemployment
  2. A slowdown in inflation
  3. A slowing of GDP
  4. Steady consumer demand
A

Peak

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The following characteristics are examples of which phase?

  1. Rising numbers of bankruptcies and bond defaults
  2. High consumer debt
  3. Falling stock prices
  4. Rising inventories
  5. Decreasing GDP
A

Contraction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The following characteristics are example of which phase?

  1. A high unemployment
  2. Flat GDP
  3. Low inflation
  4. Low, but not decreasing, consumer demand
A

Trough

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

This is when the economy enter an extended period of contraction that continues for six months or longer

A

Recession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

If a contractions continues for 18 months, it is now called a

A

Depression

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

_____ is more common during the expansion phase of the economy.

A

Inflation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly