The business cycle can be affected by static effects such as:
Health Pandemic
Changes in consumer spending habits
War
Changes in business and government spending
The business cycle can be affected by shocks such as
Covid Pandemic
Changes in consumer spending habits
Changes in business and government spending
War
During a recession, economic output
contracts for at least three years in a row
contracts for one month
contracts for at least six months
contracts for at least two years minimum
At the expansion phase of a business cycle,
real GDP is shrinking, prices are rising, and unemployment is low
real GDP is growing, prices are rising, and unemployment is low.
real GDP is growing, prices are falling, and unemployment is low.
real GDP is shrinking, prices are falling, and unemployment is low.
At the contractionary phase of a business cycle,
real GDP is flattening and unemployment is the same.
real GDP is growing and unemployment is decreasing.
real GDP is shrinking and unemployment is rising
According to the chart below , what was the unemployment rate during the peak of the business cycle?
3%
5%
4%
7%
According to the chart below, based on Real GDP, what year did we find ourselves in a recession?
1992
1993
1994
1995
1996
According to the chart below, based on Real GDP, what stage of the business cycle were we in between the end of the year in1994 and and the end of the year 1995?