Economic Fluctuations and Influencing Factors Quiz

Economic fluctuations involve unpredictable ups and downs in economic activity.

Recession is the term used for a period of declining economic activity spread across the economy.

Expansion follows a trough in economic activity, according to the business cycle theory.

Deflation describes a situation where the general price level is falling.

The business cycle refers to the fluctuations in economic activity over time.

A Stock Market Index is considered a leading indicator, reflecting the overall health of the economy.

Various factors, including those listed, can contribute to economic fluctuations.

High inflation is a characteristic of an economic boom.

A depression is a prolonged period of economic decline lasting for several years.

Unemployment Rate is a lagging indicator, reflecting economic activity after the fact.

Keynesian Economics suggests government intervention during economic downturns to stabilize the economy.

Rising interest rates can contribute to an economic recession.

Stagflation is characterized by high inflation and high unemployment simultaneously.

Natural disasters are examples of external shocks that can cause economic fluctuations.

The Gini Coefficient is not a measure of unemployment.