Question 1
What is meant by trade cycle?
A.
Fluctuations in real GDP around trend growth. B.
Taxes and benefits that cushion cycles. C.
Policy that dampens the cycle. D.
Amplifies upswings and downswings.
Question 2
What is meant by countercyclical policy?
A.
Policy that dampens the cycle. B.
Return to positive growth after downturn. C.
Fluctuations in real GDP around trend growth. D.
Taxes and benefits that cushion cycles.
Question 3
A recession is defined as:
A.
Rising exports only B.
Any trade deficit C.
Two consecutive quarters of negative growth D.
One month of falling prices
Question 4
During a boom AD tends to:
A.
Be high with inflationary pressure B.
Equal zero C.
Ignore consumption D.
Be very low
Question 5
What is meant by recession?
A.
Animal spirits amplify cycles. B.
Policy that dampens the cycle. C.
Rapid growth, high confidence, rising inflation pressure. D.
Two consecutive quarters of negative growth.
Question 6
Automatic stabilisers:
A.
Ban imports B.
Eliminate all taxation C.
Fix exchange rates D.
Reduce the amplitude of the trade cycle
Question 7
Investment is typically:
A.
Fixed by government B.
Unrelated to GDP C.
Procyclical D.
Countercyclical always
Question 8
What is meant by recovery?
A.
Return to positive growth after downturn. B.
Slowing growth and rising unemployment. C.
Two consecutive quarters of negative growth. D.
Policy that dampens the cycle.
Question 9
What is meant by boom?
A.
Taxes and benefits that cushion cycles. B.
Rapid growth, high confidence, rising inflation pressure. C.
Animal spirits amplify cycles. D.
Slowing growth and rising unemployment.
Question 10
What is meant by automatic stabilisers?
A.
Slowing growth and rising unemployment. B.
Fluctuations in real GDP around trend growth. C.
Rapid growth, high confidence, rising inflation pressure. D.
Taxes and benefits that cushion cycles.
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