Economic Fluctuations and Spending Patterns Quiz

Test your knowledge on recessions, inflation, GDP, and more with our macroeconomics quiz! Dive into economic fluctuations and spending patterns.

#1

Which of the following is a characteristic of an economic recession?

High inflation rates
Decrease in unemployment rates
Contraction in GDP
Increase in consumer spending
#2

What is the term used to describe a sustained period of economic decline?

Boom
Recession
Expansion
Peak
#3

What is the term used to describe a period of declining economic activity, often accompanied by high unemployment?

Recession
Depression
Expansion
Boom
#4

Which of the following is a measure of the total value of goods and services produced within a country's borders in a specific time period?

Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
Inflation rate
#5

What does the term 'business cycle' refer to in economics?

The fluctuation of stock prices in the market
The periodic expansion and contraction of economic activity
The process of starting a new business
The movement of goods and services across international borders
#6

Which of the following is a characteristic of an economic boom?

High unemployment rates
Decrease in consumer spending
Rapid GDP growth
Decline in business investments
#7

Which of the following is a characteristic of an economic depression?

Rapid GDP growth
High consumer confidence
Long-term unemployment
Increased business investments
#8

Which of the following is a leading indicator of economic activity?

Stock market performance
Unemployment rate
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
#9

What is the term for a situation in which inflation rises rapidly as the economy overheats?

Deflation
Hyperinflation
Stagflation
Disinflation
#10

What is the term for a sudden and severe decline in economic activity over a sustained period?

Recession
Depression
Stagflation
Deflation
#11

In the Keynesian model, what is the primary determinant of consumer spending?

Interest rates
Disposable income
Government policies
Investment levels
#12

What is the term used to describe a situation in which the economy experiences both high inflation and high unemployment?

Deflation
Stagflation
Hyperinflation
Disinflation
#13

Which of the following is a component of aggregate demand in macroeconomics?

Imports
Government spending
Foreign investments
Interest rates
#14

Which of the following is a measure of the overall level of prices in an economy?

Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
Inflation rate
#15

Which of the following is NOT a component of aggregate expenditure in the Keynesian model?

Consumption
Investment
Government spending
Imports
#16

Which of the following is NOT a tool used by central banks to control the money supply?

Open market operations
Discount rate
Reserve requirement
Fiscal policy
#17

What is the term for a situation where the general price level of goods and services is falling?

Inflation
Deflation
Hyperinflation
Disinflation
#18

What is the term for a situation where the economy experiences a prolonged period of slow economic growth and high unemployment?

Stagflation
Depression
Recession
Economic stagnation
#19

What is the term for a situation where an economy experiences a prolonged period of declining prices?

Inflation
Deflation
Hyperinflation
Stagflation

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