Question

1. Your friend asked you what a business cycle means. You tell them that a business cycle reflects changes in real GDP. Then you tell them that the stages of a business cycle in correct order are:

a. expansion, trough, recession, peak

b. expansion, peak, recession, trough

c. trough, expansion, recession, peak

2. The point of a fluctuation at which economy turns from a peak to a trough is called a/an ________.

a. recession

b. Peak

c. Expansion

3. Economic growth is supported by

a. laws restricting trade between nations.

b. laws that build trust between parties.

c. laws limiting access to private property.

4 . One of the important factors supporting economic growth is

a. an effective system of laws.

b. laws ensuring low prices.

c. a strong currency.

Answer 1

1.Stages of business cycle are follow-

Expansion,peak, recession, depression,trough,recovery,expansion.

Answer-B

2.After peak comes recession,thus recession is the point of fluctuation.

Answer-A

3.Economic growth is supported by laws that build trust between parties, because trust is important for nations or any other economic entity to engage in economic transactions.

Answer-B

4.All the factors are important but a strong currency is most important,as it ensures stability and growth.

Answer-C