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Aggregate S and D and the Business Cycle

Quiz by Jeffrey Couch

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20 questions
Show answers
  • Q1
    What stage of the business cycle is represented by the number 1?
    Question Image
    trough
    contraction
    expansion
    peak
    60s
  • Q2
    What stage of the business cycle is represented by the number 2?
    Question Image
    Contraction
    Peak
    Expansion
    Trough
    60s
  • Q3
    What stage of the business cycle is represented by the number 3?
    Question Image
    Peak
    Contraction
    Trough
    Expansion
    60s
  • Q4
    What stage of the business cycle is represented by the number 4?
    Question Image
    Peak
    Contraction
    Expansion
    Trough
    60s
  • Q5
    What fiscal policy response would be appropriate if there was INFLATION
    Increase Taxes AND Government Spending
    Reduce Taxes AND Government Spending
    Reduce Taxes, Increase Government Spending
    Raise Taxes, Decrease Government Spending
    60s
  • Q6
    What fiscal policy response would be appropriate if there was UNEMPLOYMENT
    Increase Taxes AND Government Spending
    Reduce Taxes AND Government Spending
    Reduce Taxes, Increase Government Spending
    Raise Taxes, Decrease Government Spending
    60s
  • Q7
    The Economy shown in the picture:
    Question Image
    Is experiencing Inflation
    Is experiencing a Recessionary Gap
    Is operating at Full Employment Equilibrium
    60s
  • Q8
    The Economy shown in the picture:
    Question Image
    Is experiencing a Recessionary Gap
    Is operating at Full Employment Equilibrium
    Is experiencing Inflation
    60s
  • Q9
    The Economy shown in the picture:
    Question Image
    Is experiencing a Recessionary Gap
    Is operating at Full Employment Equilibrium
    Is experiencing Inflation
    60s
  • Q10
    What type of unemployment? A restaurant server gets laid off because people are saving money rather than spending.
    Frictional
    Structural
    Cyclical
    60s
  • Q11
    What type of unemployment? A teacher quits his job because he wants to move to Wyoming and become a cowboy.
    Cyclical
    Structural
    Frictional
    60s
  • Q12
    What type of unemployment? An autoworker (car maker) loses her job because a robot is invented that can do her job.
    Structural
    Cyclical
    Frictional
    60s
  • Q13
    Goods that we buy MORE of when the price is low or when our income is high are called:
    Question Image
    Normal
    Fancy
    Generic
    Inferior
    60s
  • Q14
    Goods that we buy MORE of when the price is low or when our income is high are called:
    Question Image
    Normal
    Inferior
    Generic
    Fancy
    60s
  • Q15
    The degree to which demand changes with price or income is called:
    Question Image
    Inflation
    Neutrality
    Preference
    Elasticity
    60s

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