BUSINESS CYCLES

Which of the following is not a phase of the Business Cycle?

A) Expansion

B) Peak

C) Inflation

D) Trough

InflationI

What is the first phase of the Business Cycle?

A) Contraction

B) Peak

C) Expansion

D) Trough

Expansion

What happens during the Expansion phase?

A) Decrease in employment

B) Increase in national output and investment

C) Maximum unemployment

D) Business shutd☆owns

Increase in national output and investment

What is the Peak phase also known as?

A) Trough

B) Depression

C) Boom

D) Recovery

Boom

Which phase is characterized by declining investment and employment?

A) Peak

B) Expansion

C) Contraction

D) Recovery

Contraction

The Trough phase is also known as:

A) Boom

B) Depression

C) Recovery

D) Recession

Depression

Which of the following features does NOT apply to the Business Cycle?

A) Periodicity

B) Uniform duration

C) Different phases

D) Impact on national income

uniform duration

Which cause is considered an internal factor in Business Cycles?

A) War

B) Aggregate demand fluctuations

C) Technological innovations in other countries

D) Natural disasters

aggregate demand fluctuations

Who emphasized fluctuations in aggregate demand as a key cause of Business Cycles?

A) Schumpeter

B) Keynes

C) Hawtrey

D) Robbins

Keynes

According to Schumpeter, which of the following triggers Business Cycles?

A) Political changes

B) Innovations

C) Wars

D) Inflation

Innovations

Which of the following is NOT an external cause of Business Cycles?

A) War

B) Natural calamities

C) Government policies

D) Aggregate demand fluctuations

Aggregated demand fluctuations

Which of the following best describes the Depression phase?

A) High employment

B) Rising investments

C) Maximum unemployment and firm shutdowns

D) Increasing national income

maximum unemployment and firm shutdowns

When do banks restrict credit, worsening the economic situation?

A) During Peak

B) During Expansion

C) During Recession

D) During Boom

during recession

What is the result of declining profits and wages in the Contraction phase?

A) Increased demand

B) Business optimism

C) Pessimism

D) Increased investment

Pessimism

Which phase is also called Recovery?

A) Expansion

B) Peak

C) Contraction

D) Trough

Expansion

What is the highest point in the Business Cycle?

A) Peak

B) Trough

C) Contraction

D) Expansion

Peak

What happens to aggregate demand during Expansion?

A) It declines

B) It remains constant

C) It increases

D) It has no effect

It Increases

Which of the following indicates a severe downturn?

A) Recession

B) Boom

C) Depression

D) Expansion

depression

Which factor does NOT directly influence the Business Cycle?

A) Technological changes

B) Psychological factors

C) Lunar cycles

D) Government policies

Lunar cycles

What happens to employment during a Recession?

A) Increases rapidly

B) Decreases

C) Remains stable

D) Unaffected

decreases

What can expansionary monetary policy lead to?

A) Contraction

B) Recession

C) Boom

D) Decline in demand

boom

According to Hawtrey, what is the main cause of Business Cycles?

A) Wars

B) Innovations

C) Credit fluctuations

D) Political changes

Credit fluctuations

Business Cycles can spread to other sectors due to:

A) Isolation

B) Independence

C) Interdependence

D) Random events

Interdependence

Which stage is marked by high GDP and full employment?

A) Trough

B) Depression

C) Peak

D) Contraction

Peak

Which of the following is NOT a characteristic of the Trough phase?

A) Low demand

B) Low investment

C) Full employment

D) Business closures

Full employment

Which of the following is NOT a key feature of the Business Cycle?
A) Periodicity
B) Interdependence
C) Uniform effects in all countries
D) Different phases

Uniform effects in all countries

Which of the following is NOT a key feature of the Business Cycle?

A) Periodicity

B) Interdependence

C) Uniform effects in all countries

D) Different phases

Uniform effects in all countries