#1
Which of the following is a characteristic of economic fluctuations?
They are predictable and regular.
They are caused by changes in the long-term growth trend.
They involve fluctuations in aggregate economic activity.
They only affect specific industries.
#2
What does GDP stand for?
General Demand Pattern
Gross Domestic Product
Government Development Program
Global Demand Percentage
#3
What does the term 'business cycle' refer to?
The rise and fall of individual businesses
The fluctuation in the stock market
The periodic expansion and contraction of economic activity
The lifecycle of a company
#4
What is the name given to the phase of the business cycle characterized by declining economic activity?
Recession
Expansion
Peak
Trough
#5
What is the term used to describe a period of sustained economic growth and rising employment levels?
Stagnation
Depression
Expansion
Contraction
#6
Which of the following is a lagging economic indicator?
Unemployment rate
Consumer confidence index
Stock prices
Industrial production
#7
What is the key characteristic of a recession?
Rapid increase in unemployment
High inflation rates
Strong economic growth
Decrease in consumer spending
#8
What is the term used to describe a prolonged period of economic decline?
Depression
Expansion
Boom
Stagflation
#9
Which of the following is NOT a tool of fiscal policy?
Taxation
Government spending
Interest rates
Transfer payments
#10
What is the primary function of monetary policy?
Stabilizing employment levels
Regulating government spending
Controlling inflation and interest rates
Promoting international trade
#11
Which of the following is a component of aggregate demand?
Government spending
Imports
Private savings
Foreign investments
#12
In the context of economic fluctuations, what is 'stagflation'?
High inflation combined with high unemployment
Rapid economic growth with low inflation
A period of deflation followed by rapid inflation
Stagnant economic growth with no inflation
#13
What is the term used to describe a situation where an economy experiences both inflation and stagnant economic growth?
Hyperinflation
Deflation
Stagflation
Disinflation
#14
What does the term 'demand shock' refer to in the context of economic fluctuations?
A sudden increase in consumer spending
A sudden decrease in aggregate demand
A sudden increase in government spending
A sudden decrease in interest rates
#15
What is the term used to describe a situation where the economy is operating below its potential level of output?
Overcapacity
Full employment
Underutilization of resources
Capacity utilization