Economic Cycles and Indicators Quiz
Challenge yourself with questions on business cycles, economic indicators, and more in this macroeconomics quiz.
#1
Which of the following is NOT considered a phase of the business cycle?
Expansion
Recession
Depression
Equilibrium
#2
What is the name for the period of economic decline when the value of goods and services decreases for two consecutive quarters?
Stagnation
Deflation
Depression
Recession
#3
Which of the following is NOT a component of Gross Domestic Product (GDP)?
Consumption
Investment
Government Spending
Imports
#4
What is the term used to describe a situation where the total output of an economy decreases for two consecutive quarters?
Depression
Deflation
Stagnation
Recession
#5
What is the term used to describe a situation where prices of goods and services are continuously falling?
Inflation
Stagflation
Deflation
Hyperinflation
#6
Which economic indicator measures the average price level of a basket of goods and services purchased by households?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Producer Price Index (PPI)
Retail Sales
#7
During which phase of the business cycle does the unemployment rate typically peak?
Expansion
Peak
Recession
Trough
#8
What is the primary function of the Federal Reserve System in the United States?
Regulating international trade
Controlling inflation
Conducting monetary policy
Implementing fiscal policy
#9
Which of the following is a lagging economic indicator?
Consumer Price Index (CPI)
Retail Sales
Unemployment Rate
Average Weekly Hours Worked
#10
What is the term used to describe a sustained increase in the general price level of goods and services in an economy?
Deflation
Stagflation
Hyperinflation
Inflation
#11
Which of the following is NOT a leading economic indicator?
Stock Market Performance
Building Permits
Unemployment Claims
Gross Domestic Product (GDP)
#12
What is the significance of an inverted yield curve in predicting economic trends?
It indicates an upcoming recession
It suggests higher inflation rates
It signals strong economic growth
It implies deflationary pressures
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