Title: QUIZ: The Business Cycle -- Economic Lowdown Audio Series
Course: Andria Testing FRE2 > Section: The Business Cycle -- Economic Lowdown Audio Series

Q: A period when economic output increases known as a(n) ___________.
- recession
- expansion
- contraction
- business cycle
A: expansion

Q: A period when economic output decreases known as a(n) ___________.
- peak
- expansion
- contraction
- business cycle
A: contraction

Q: A significant decline in general economic activity extended over a period of time is known as a(n) ___________.
- recession
- expansion
- peak
- business cycle
A: recession

Q: After a period of recession, what is the initial increase in output called?
- Economic recovery
- Business cycle
- Contraction
- Trough
A: Economic recovery

Q: The fluctuating levels of economic activity in an economy over a period of time measured from the beginning of one recession to the beginning of the next is known as a(n) ___________.
- economic recovery
- expansion
- contraction
- business cycle
A: business cycle

Q: The Federal Reserve's two objectives include ___________.
- price stability and maximum employment
- price stability and zero unemployment
- zero inflation and zero unemployment
- zero inflation and maximum employment
A: price stability and maximum employment

Q: What percent inflation rate does the Federal Reserve try to maintain?
- -2%
- 0%
- 2%
- 4%
A: 2%

Q: How does employment typically change over the business cycle?
- Employment rises during recessions and falls during expansions
- Employment rises during contractions and falls during expansions
- Employment rises during expansions and falls during contractions
- Employment falls during expansions and contractions
A: Employment rises during expansions and falls during contractions