Unit 12: The Business Cycle Test with Verified Answers
1. Which segment of the business cycle would one Expansion
expect to find rising interest rates and higher
wages?
2. Recent reports indicate that the gross domestic a recession.
product (GDP) has been declining steadily over the
past two quarters. This would suggest
3. U.S. consumers are increasing their imports of for- decrease.
eign-made goods. On this data alone, one might
expect gross domestic product (GDP) to
4. According to the U.S. Commerce Department, the 6 months or more.
economy is in a recession when a decline in real
output of goods and services lasts
5. Just as markets can be influenced by many fac- Political elections
tors, so can the market price of a single compa-
ny's stock. While all of the following could impact
a company's stock price to some extent, which
would be the least likely to have a direct and im-
mediate impact?
6. An expansion in the business cycle would be char- increasing consumer demand for
acterized by goods and services, increasing
industrial production, and rising
stock markets and property val-
ues.
7. Which of the following are characteristics of an Higher consumer debt
economic downturn?
8. depressions.
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1. Which segment of the business cycle would one Expansion
expect to find rising interest rates and higher
wages?
2. Recent reports indicate that the gross domestic a recession.
product (GDP) has been declining steadily over the
past two quarters. This would suggest
3. U.S. consumers are increasing their imports of for- decrease.
eign-made goods. On this data alone, one might
expect gross domestic product (GDP) to
4. According to the U.S. Commerce Department, the 6 months or more.
economy is in a recession when a decline in real
output of goods and services lasts
5. Just as markets can be influenced by many fac- Political elections
tors, so can the market price of a single compa-
ny's stock. While all of the following could impact
a company's stock price to some extent, which
would be the least likely to have a direct and im-
mediate impact?
6. An expansion in the business cycle would be char- increasing consumer demand for
acterized by goods and services, increasing
industrial production, and rising
stock markets and property val-
ues.
7. Which of the following are characteristics of an Higher consumer debt
economic downturn?
8. depressions.
1/3
