#1
Which of the following is a characteristic of an economic recession?
Decrease in unemployment rates
Increase in consumer spending
Decline in GDP for two consecutive quarters
Rise in business investments
#2
What is the name of the phenomenon where an economy experiences negative growth for two consecutive quarters?
Depression
Stagflation
Recession
Hyperinflation
#3
Which of the following is a key component of fiscal policy?
Interest rate adjustments
Government spending and taxation
Open market operations
Reserve requirement changes
#4
Which of the following is an indicator used to measure the level of economic activity in a country?
Consumer Price Index (CPI)
Producer Price Index (PPI)
Gross Domestic Product (GDP)
Retail Sales Index (RSI)
#5
Which of the following is a characteristic of an economic expansion?
Decrease in GDP
Rising employment levels
Decline in consumer spending
Reduction in business investments
#6
Which of the following is NOT a component of GDP?
Government spending
Net exports
Household savings
Business investments
#7
What is the primary goal of monetary policy during an economic downturn?
Stimulate economic growth
Control inflation
Reduce interest rates
Increase government spending
#8
Which of the following is NOT a tool used by central banks to implement monetary policy?
Open market operations
Fiscal policy adjustments
Reserve requirements
Discount rate changes
#9
Which of the following best describes the term 'stagflation'?
High inflation combined with high unemployment and stagnant economic growth
Low inflation combined with high unemployment and robust economic growth
Low inflation combined with low unemployment and stagnant economic growth
High inflation combined with low unemployment and robust economic growth
#10
In which economic phase is the focus on controlling inflation rather than stimulating growth?
Recovery
Peak
Contraction
Expansion
#11
What is the name of the theory that suggests government intervention can stabilize the economy during downturns?
Laissez-faire economics
Monetarism
Keynesian economics
Supply-side economics
#12
During a recession, what is likely to happen to the level of consumer confidence?
Remain unchanged
Increase
Decrease
Depends on government policies
#13
What is the name of the theory that suggests changes in the money supply directly affect interest rates?
Fiscal policy
Quantity theory of money
Monetarism
Keynesian economics
#14
During an economic expansion, what is likely to happen to the inflation rate?
Remain constant
Decrease
Increase
Depends on government policies
#15
Which of the following is NOT a factor that can contribute to economic fluctuations?
Technological advancements
Consumer confidence
Government policies
Currency exchange rates
#16
Which of the following is NOT a goal of fiscal policy?
Stabilizing economic growth
Controlling inflation
Managing government debt
Regulating money supply
#17
What term is used to describe the situation where an economy experiences prolonged periods of high inflation combined with slow economic growth and high unemployment?
Hyperinflation
Stagflation
Deflation
Expansion