This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the lowest level of a recession? A) Peak. B) Trough. C) Pit. D) Resolution. Show Answer Correct Answer: B) Trough. 2. If People are optimistic about the Economy they will tend to the what with their money? A) More likely to spend their Money. B) More likely to put money in a savings account. C) More likely to hold their money in their mattress and save it. D) Leave the Country and find a better economy. Show Answer Correct Answer: A) More likely to spend their Money. 3. Lowest levels experienced during a recession; accounts for the least amount of output and employment A) Trough. B) Recession. C) Growth. D) Business Cycle. Show Answer Correct Answer: A) Trough. 4. Which cause of inflation suggests that there is too much money in circulation in the money supply? A) Quantity Theory. B) Cost-Push Theory. C) Demand-Pull Theory. D) Demand-Push Theory. Show Answer Correct Answer: A) Quantity Theory. 5. GDP includes all of the goods and services created by businesses outside of a country's borders. A) True. B) False. Show Answer Correct Answer: B) False. 6. Which of the following is NOT an example of an organization? A) An international corporation. B) A private school. C) A group of friends. D) A community non-profit affiliation. Show Answer Correct Answer: C) A group of friends. 7. Aggregate demand shifts left when the government A) Decreases taxes. B) Cuts military expenditures. C) Both of the above are correct. D) None of the above is correct. Show Answer Correct Answer: B) Cuts military expenditures. 8. This type of inflation occurs when the demand for products is greater that the supply of products. A) Cost push inflation. B) Demand pull inflation. C) Divisional inflation. D) Structural inflation. Show Answer Correct Answer: B) Demand pull inflation. 9. Which of the following types of organizational structures is normally found in a smaller business with fewer employees? A) Employer-based structure. B) Informal structure. C) Employee-based structure. D) Formal structure. Show Answer Correct Answer: B) Informal structure. 10. The higher the GDP/ GDP per capita, ..... A) The higher the voter turnout. B) The better the school systems. C) The worse the economy is. D) The stronger the economy. Show Answer Correct Answer: D) The stronger the economy. 11. What does a graphical model of the business cycle show? A) The interactions of households and firms in factor and product markets. B) Short-run economic growth and long-run fluctuations in GDP over time. C) Changes in a nation's aggregate output in response to changes in the aggregate price level. D) Short-run fluctuations in GDP but a long-run increase in GDP over time. E) Fluctuations in unemployment and inflation over time. Show Answer Correct Answer: D) Short-run fluctuations in GDP but a long-run increase in GDP over time. 12. GDP that is NOT adjusted for inflation A) Real GDP. B) Nominal GDP. C) Price level. D) Net national product. Show Answer Correct Answer: B) Nominal GDP. 13. What type of GDP is calculated is adjusted for inflation? A) Nominal GDP. B) Real GDP. C) GDP per capita. D) None of above. Show Answer Correct Answer: B) Real GDP. 14. Which participant in the circular flow diagram is also known as the public sector? A) Consumers. B) Government. C) Businesses. D) The foreign sector . Show Answer Correct Answer: B) Government. 15. Which of the following is NOT a business cycle indicator? A) Labor force. B) National defense. C) Personal incomes and consumers attitudes. D) Out of date products. Show Answer Correct Answer: D) Out of date products. 16. What is the term used to account for inflation when calculating GDP? A) Real. B) Weighted. C) Consumer Price Index (CPI). D) GDP per capita. Show Answer Correct Answer: A) Real. 17. Weather is a factor that changes ..... A) Supply. B) Demand. Show Answer Correct Answer: A) Supply. 18. What do you call a worker who takes a lower skilled job to which they are overqualified because he/she/they cannot get another job? A) A discouraged worker. B) Underemployed worker. C) A seasonal worker. D) Santa Claus. Show Answer Correct Answer: B) Underemployed worker. 19. Which is the largest component of GDP? A) Consumption. B) Government spending. C) Investment (in physical capital). D) Net Exports. Show Answer Correct Answer: A) Consumption. 20. True or False? Aggregate Supply is:s the total amount of goods and services that households, businesses, government, and foreign purchasers will buy at each and every price level. A) True. B) False. Show Answer Correct Answer: B) False. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 8Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books