Economic Cycles Quiz

Test your knowledge of economic phases, GDP, fiscal & monetary policies, and more with this macroeconomics quiz on economic cycles.

#1

In the context of economic cycles, what is the meaning of GDP?

General Demand Projection
Gross Domestic Product
Government Development Plan
Global Demand Portfolio
#2

Which economic theory emphasizes the importance of government intervention to stabilize the economy during economic cycles?

Monetarism
Keynesianism
Austrian School
Supply-side economics
#3

During an economic expansion, what is the likely impact on inflation rates?

Increase
Decrease
Remain unchanged
No correlation with expansion
#4

Which economic indicator reflects the overall health of the labor market and is closely monitored during economic cycles?

GDP per capita
Consumer Price Index (CPI)
Unemployment rate
Balance of trade
#5

During an economic recession, what is the likely impact on consumer confidence?

Increase
Remain unchanged
Decrease
No correlation with recession
#6

What is the term for the total value of all goods and services produced within a country's borders in a specific time period?

National debt
Trade balance
Gross Domestic Product (GDP)
Fiscal deficit
#7

Which phase of the economic cycle is characterized by high unemployment and low economic activity?

Expansion
Recovery
Peak
Recession
#8

Which economic cycle phase is characterized by increasing business investments, rising employment, and consumer confidence?

Recession
Expansion
Peak
Trough
#9

During which phase of the economic cycle do interest rates typically rise as a result of strong economic activity?

Recession
Expansion
Peak
Trough
#10

What is the main focus of fiscal policy during an economic downturn?

Increasing government spending
Reducing taxes
Decreasing money supply
Raising interest rates
#11

In the context of economic cycles, what is the term for the period of economic decline between the peak and the trough?

Expansion
Recovery
Recession
Peak
#12

Which economic cycle phase is characterized by a decrease in business activity, rising unemployment, and declining consumer spending?

Expansion
Trough
Peak
Recession
#13

What is the primary cause of an economic downturn during the contraction phase?

Decrease in government spending
Rising consumer confidence
Decline in business investments
Increase in exports
#14

Which indicator is often considered a leading indicator of economic activity and is used to predict future economic trends?

Unemployment rate
Consumer Price Index (CPI)
Stock market performance
Inflation rate
#15

Which factor often contributes to the end of an economic expansion phase and the beginning of a recession?

Rapid technological advancement
Financial market stability
Excessive debt levels
Global peace agreements
#16

What is the role of central banks during the contraction phase of the economic cycle?

Lowering interest rates
Selling government bonds
Increasing money supply
Encouraging inflation
#17

What is the primary goal of monetary policy during an economic contraction?

Reducing government spending
Increasing taxes
Stabilizing prices
Controlling inflation
#18

Which type of inflation is associated with an increase in the prices of goods and services due to increased production costs?

Demand-pull inflation
Cost-push inflation
Hyperinflation
Stagflation

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