Top 50+ Solved Business Cycle, inflation and deflation MCQ Questions Answer
Q. In a boom:
a. unemployment is likely to fall
b. prices are likely to fall
c. demand is likely to fall
d. imports are likely to fall
Q. Peaks and troughs of the business cycle are known collectively as
a. volatility.
b. turning points.
c. equilibrium points.
d. real business cycle events.
Q. When aggregate economic activity is declining, the economy is said to be in
a. a contraction.
b. an expansion.
c. a trough.
d. a turning point.
Q. Industries that are extremely sensitive to the business cycle are the
a. durable goods and service sectors.
b. nondurable goods and service sectors.
c. capital goods and nondurable goods sectors.
d. capital goods and durable goods sectors.
Q. Economists use the term shocks to mean
a. unexpected government actions that affect the economy.
b. typically, unpredictable forces that have major impacts on the economy.
c. sudden rises in oil prices.
d. the business cycles.