Claudia L. Ramirez 12 th Grade Economics

The Business Cycle has four stages. What are they? A. Expansion, Inflation, Contraction, Deflation Expansion, Inflation, Contraction, Deflation B. Expansion, Peak, Decrease, Increase Expansion, Peak, Decrease, Increase C. Expansion, Peak, Contraction, Trough Expansion, Peak, Contraction, Trough D. Expansion, Boom, Contraction, Bust Expansion, Boom, Contraction, Bust

What does Expansion represent in the business cycle? A. Help business expand Help business expand B. Produce more goods Produce more goods C. Hire more workers Hire more workers D. All of the above All of the above

What is the Peak? A. Low level in expansion Low level in expansion B. Medium level in expansion Medium level in expansion C. Highest level in expansion Highest level in expansion D. None of the above None of the above

What is the effect of contraction in the business cycle? A. Consumer consumption decreases Consumer consumption decreases B. Unemployment increases Unemployment increases C. Production decreases Production decreases D. All of the above All of the above

If a contraction last more than a few months it is also known as a: A. Tight spot Tight spot B. Recession Recession C. Flaw Flaw D. Rule of thumb Rule of thumb

A long term recession may cause a _________, it causes people to lose their jobs and life savings. A. Depression Depression B. Glitch Glitch C. Loop hole Loop hole D. All of the above All of the above

A Trough is: A. Higher than a peak Higher than a peak B. Opposite of a peak Opposite of a peak C. Equal to the peak Equal to the peak D. None of these None of these

What graph resembles a Business Cycle?