Economic Growth and Business Cycles Quiz

Test your knowledge on economic growth, business cycles, GDP, and more with this macroeconomics quiz. Explore key concepts and theories in 20 questions.

#1

Which of the following is a characteristic of economic growth?

Stable unemployment rate
Decrease in GDP per capita
Increase in real GDP over time
Rising inflation rates
#2

What is the primary measure of economic growth?

Total population
Gross Domestic Product (GDP)
Income inequality
Consumer Price Index (CPI)
#3

What is the term for a period of economic growth characterized by rising prices?

Recession
Depression
Inflation
Deflation
#4

Which of the following is NOT a phase of the business cycle?

Expansion
Peak
Trough
Stagnation
#5

What is the term used to describe the total value of all final goods and services produced within a country's borders in a given time period?

Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
#6

In which phase of the business cycle is there a decline in economic activity?

Expansion
Recovery
Peak
Recession
#7

Which phase of the business cycle is characterized by high unemployment and low consumer spending?

Expansion
Peak
Recession
Trough
#8

What is the primary cause of business cycles according to Keynesian economics?

Changes in technology
Government policies
Fluctuations in consumer confidence
Variations in aggregate demand
#9

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

Inflation
Deflation
Depression
Stagflation
#10

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

Decrease in consumer spending
Rising unemployment
Increase in business investments
Decline in GDP
#11

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

Recession
Depression
Stagnation
Deflation
#12

Which of the following is NOT a component of GDP?

Government spending
Exports
Imports
Unemployment benefits
#13

Which of the following is NOT a factor affecting economic growth?

Technological advancements
Government policies
Climate change
Population growth
#14

Which policy measure is typically used to counteract a recession?

Tightening monetary policy
Increasing taxes
Decreasing government spending
Expansionary monetary and fiscal policies
#15

Who is often considered the father of modern economics and the pioneer of economic growth theory?

Adam Smith
John Maynard Keynes
David Ricardo
Robert Solow
#16

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

Consumer confidence index
Unemployment rate
Inflation rate
Interest rates
#17

What is the term for the situation where an economy's output exceeds its potential output?

Stagnation
Inflationary gap
Recessionary gap
Deflationary gap
#18

Who proposed the theory of creative destruction, which suggests that economic growth arises when new technologies and industries replace outdated ones?

John Maynard Keynes
Joseph Schumpeter
Milton Friedman
Friedrich Hayek
#19

Which of the following is a measure of income inequality within a country?

Consumer Price Index (CPI)
Gini coefficient
Real GDP
Aggregate demand
#20

What is the term used to describe the gap between potential and actual GDP?

Inflationary gap
Recessionary gap
Output gap
Budgetary gap

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