Question Details

Which of the following is not a phase or turning point of the business cycle 



1) Which of the following statements is true?
A) Real GDP fluctuates around potential GDP.
B) Potential GDP fluctuates around real GDP.
C) Potential GDP is the same as real GDP.
D) When all of the economyʹs resources are fully employed, the value of production is called
real GDP.

2) Real GDP
A) fluctuates from year to year but is always below potential GDP.
B) fluctuates around potential GDP.
C) grows at a constant 3 to 4 percent per year.
D) can be called potential GDP when it is adjusted for price changes.
3) The term ʺbusiness cycleʺ most closely refers to the
A) fluctuating profits of firms.
B) fiscal year.
C) accounting period used by firms.
D) alternating periods of expansions and recessions.
4) Which of the following is not a phase or turning point of the business cycle ?
A) recession
B) expansion
C) shutdown
D) trough
5) The four parts of the business cycle occur in the following order:
A) recession, trough, peak, expansion.
B) expansion, trough, peak, recession.
C) recession, trough, expansion, peak.
D) expansion, trough, recession, peak.



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