Title: QUIZ: All About the Business Cycle: Where Do Recessions Come From? -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: All About the Business Cycle: Where Do Recessions Come From? -- Page One Economics®

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

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.

Q: A period when economic output decreases is 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: What is the natural state of an economy?
- Expansion, positive growth
- Contraction, negative growth
- Recession
- Movement through the four stages of the business cycle
A: Expansion, positive growth

Q: Which organization is responsible for determining whether the economy is in recession?
- Federal Reserve
- U.S. Department of the Treasury
- Bureau of Economic Analysis
- National Bureau of Economic Research
A: National Bureau of Economic Research

Q: A recession is best described as
- two quarters of negative growth of real GDP.
- a significant decline in economic activity that is spread across the economy and lasts more than a few months.
- a period when unemployment is high and rising.
- a period when inflation is high and rising.
A: a significant decline in economic activity that is spread across the economy and lasts more than a few months.

Q: The first month of a recession is the month
- following the peak.
- before the peak.
- following the trough.
- before the trough.
A: following the peak.

Q: How long after a recession has begun does it typically take the NBER to announce the recession’s start date?
- Between 4 and 21 days
- Between 4 and 21 weeks
- Between 4 and 21 months
- Between 4 and 21 years
A: Between 4 and 21 months