Economic Fluctuations Quiz

Explore economic cycles, recessions, and growth phases with our Macroeconomics quiz. Test your understanding now!

#1

Which of the following is a characteristic of economic fluctuations?

Consistent growth over time
Stable unemployment rates
Periods of expansion and contraction
Constant inflation rates
#2

What is the name of the phase in the business cycle characterized by a decline in economic activity?

Expansion
Recession
Peak
Trough
#3

What is the term for the period of sustained economic growth and expansion?

Peak
Trough
Expansion
Recession
#4

Which of the following is NOT a characteristic of a recession?

Rising unemployment
Decreased consumer spending
Increasing GDP
Declining business investment
#5

What is the term for a prolonged period of economic decline?

Expansion
Trough
Depression
Boom
#6

Which of the following is NOT a cause of economic fluctuations?

Changes in consumer preferences
Technological advancements
Natural disasters
Government policies
#7

What economic indicator is often used to determine whether an economy is in a recession?

Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
Stock market performance
#8

What is the term for the highest point of economic activity in the business cycle?

Peak
Trough
Expansion
Recession
#9

Which of the following is NOT a monetary policy tool used by central banks to address economic fluctuations?

Open market operations
Fiscal stimulus
Discount rate changes
Reserve requirements
#10

What is the term for a temporary economic downturn lasting less than a year?

Depression
Expansion
Recession
Boom
#11

Which economist proposed the theory of 'animal spirits' to explain economic fluctuations?

John Maynard Keynes
Adam Smith
Milton Friedman
Friedrich Hayek
#12

In which phase of the business cycle is the unemployment rate typically the lowest?

Recession
Expansion
Trough
Peak
#13

What is the term for a period of rapid economic growth and high employment levels?

Expansion
Depression
Trough
Boom
#14

What is the term for the situation in which an economy experiences a prolonged period of negative economic growth and high unemployment?

Stagnation
Recession
Expansion
Boom
#15

In which phase of the business cycle does the economy reach its highest level of economic activity?

Peak
Trough
Expansion
Recession

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