Check for Understanding: The Economic Cycle

Check for Understanding: The Economic Cycle

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Question 1 of 4

1. Question
Which term is sometimes used interchangeably with the business cycle?
- Economic cycle
- Trade cycle
- Market cycle
- Price cycle
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Question 2 of 4

2. Question
What represents a peak in the business cycle?
- Period of high economic activity
- Period of low economic activity
- Transition from expansion to contraction
- Transition from contraction to expansion
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Question 3 of 4

3. Question
What typically happens during an expansion phase of the business cycle?
- Rising unemployment and decreasing output
- Falling prices and deflation
- Increasing consumer spending and investment
- Tightening monetary policy and higher interest rates
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Question 4 of 4

4. Question
What typically happens during a recession phase of the business cycle?
- Rising unemployment and decreasing output
- Falling prices and deflation
- Increasing consumer spending and investment
- Loose monetary policy and lower interest rates
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