Question :
11) During the business cycle,
A) real GDP fluctuates around nominal : 1240848
11) During the business cycle,
A) real GDP fluctuates around nominal GDP.
B) nominal GDP fluctuates around real GDP.
C) real GDP fluctuates around its trend.
D) trend GDP fluctuates around real GDP.
E) real GDP falls after the trough.
12) A business cycle has two turning points, which are the
A) recession and trough.
B) peak and recession.
C) trough and peak.
D) expansion and recession.
E) peak and expansion.
13) The business cycle has two phases,
A) expansion and peak.
B) recession and trough.
C) peak and trough.
D) recession and expansion.
E) expansion and trough.
14) Based on the figure above, in which quarter or quarters did a recession occur?
A) between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure
B) in 2013, 2nd quarter
C) between 2013, 2nd quarter to 2014, 2nd quarter
D) between 2014, 1st quarter to 2014 2nd quarter
E) after 2013, 2nd quarter
15) Based on the figure above, in which quarter or quarters did an expansion occur?
A) between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure
B) in 2013, 2nd quarter
C) between 2013, 2nd quarter to 2014, 2nd quarter
D) in 2014, 2nd quarter
E) There are no expansions illustrated in the figure.
16) Based on the figure above, in which quarter or quarters did a trough occur?
A) between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure
B) in 2013, 2nd quarter
C) between 2013, 2nd quarter to 2014, 2nd quarter
D) in 2014, 2nd quarter
E) There are no troughs illustrated in the figure.
17) Based on the figure above, in which quarter or quarters did a peak occur?
A) between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure
B) in 2013, 2nd quarter
C) between 2013, 2nd quarter to 2014, 2nd quarter
D) in 2014, 2nd quarter
E) There are no peaks illustrated in the figure.
18) A standard definition of recession is
A) a period of expansion in many sectors of the economy.
B) an increase in GDP that lasts for at least 6 months.
C) a decrease in GDP that lasts for at least 6 months.
D) an increase in unemployment from one month to the next.
E) a period of time when the unemployment rate exceeds 6.5 percent.
19) In order to be classified as a recession, a contraction of general economic activity must last at least
A) one year.
B) six months.
C) one period.
D) one quarter.
E) None of the above because recessions do not have a minimum length.
20) A recession conventionally is defined as a decrease in
A) real GDP that lasts for at least six months.
B) the growth rate of real GDP that lasts for at least six months.
C) potential GDP that lasts for at least six months.
D) real GDP that lasts for at least three months.
E) the inflation rate that lasts for at least six months.