Question 1

At the end of an expansion,wages of workers are usually rising faster than prices.

Accepted Answer

During an economic expansion, the demand for labour usually rises, which causes wages to increase. As the demand for goods and services also increases, prices can also rise, but usually not as quickly as wages. Therefore, at the end of an expansion, wages of workers are usually rising faster than prices.

Question 2

________ officially decides when a recession begins and ends.

Accepted Answer

The determination of when a recession begins and ends is not made by any single individual or organization. It is usually determined by examining economic indicators such as GDP, unemployment rates, and consumer spending over a period of time. Often, many different organizations and experts will provide their own analyses and opinions on when a recession has occurred or ended. Therefore, none of the options provided are the correct answer.

Question 3

Which of the following might make it a good idea for a business to expand during a recession?

Accepted Answer

During a recession, interest rates tend to be low, making it easier and less costly for businesses to borrow money to finance expansion. This can make it a good time for businesses to take advantage of low financing costs to grow their operations.

Question 4

When the economy reaches a trough in a business cycle,which of the following will occur?

Accepted Answer

When the economy reaches a trough, which is the lowest point of the business cycle, it marks the end of a recession and the beginning of an expansion. As a result, income, production, and employment will begin to pick up as businesses start to invest and hire more, consumer spending increases, and overall economic activity starts to improve. Therefore, option B is the correct answer.

Question 5

A recession begins with a(n)________ in spending by firms on capital goods and a(n)________ in spending on durable goods by households.

Accepted Answer

A recession typically starts with a decrease in spending by firms on capital goods and a decrease in spending on durable goods by households, as both groups cut back on expenditures in anticipation of or in response to economic downturns.

Question 6

Economists have not found a way to predict when recessions will begin and end.

Accepted Answer

While economists can use various indicators and models to assess the likelihood of a recession, there is no foolproof method for predicting when a recession will start or end with certainty. Economic downturns can be caused by a variety of factors, including unexpected shocks to the system, and their duration and severity can vary widely.

Question 7

How are unemployment,inflation,and the business cycle related?

Accepted Answer

The answer of How are unemployment,inflation,and the business cycle related?...

Question 8

The generally accepted definition of a recession is

Accepted Answer

The answer of The generally accepted definition of a recession...

Question 9

As the economy nears the end of an expansion,interest rates usually ________,and wages rise more ________ than prices.

Accepted Answer

As the economy nears the end of an expansion, interest rates usually rise because central banks often increase rates to control inflation. Wages tend to rise more rapidly than prices due to increased demand for labor and the lag in wage adjustments.

Question 10

How have government policies and programs affected the volatility of the business cycle in Canada? Explain and provide at least two specific examples of policies or programs that may have had an impact.

Accepted Answer

The answer of How have government policies and programs affected...

Question 11

The commonly accepted definition of a recession is at least two consecutive quarters of falling real GDP.

Accepted Answer

This is the commonly accepted definition of a recession by economists and policymakers.

Question 12

Because Bombardier produces expensive durable goods,the demand for their goods

Accepted Answer

Bombardier produces expensive durable goods, such as planes and trains, which customers may delay purchasing during a recession or economic downturn. Therefore, demand for Bombardier's goods tends to follow the business cycle, with demand increasing during economic expansions and decreasing during contractions.

Question 13

A period of expansion in the business cycle ends when

Accepted Answer

A period of expansion ends when the business cycle reaches its peak, which is the highest point of economic activity before it starts to slow down and enter a contraction phase.

Question 14

Which of the following goods would see the largest decline in demand during a recession?

Accepted Answer

During a recession, people tend to hold off on big-ticket purchases, such as cars. They may also opt for cheaper alternatives, such as public transportation or used cars. Thus, the demand for automobiles is likely to see the largest decline among the given options.

Question 15

Which of the following goods would be most likely to see demand increase during a recession?

Accepted Answer

During a recession, people tend to cut down on their expenses and look for cheaper alternatives for their needs. Instant noodles are cheap and convenient, making them a popular choice for those on a tight budget.

Question 16

During the expansion phase of the business cycle,

Accepted Answer

During the expansion phase of the business cycle, production increases. This is due to higher demand for goods and services as consumers have more disposable income and businesses are investing in growth.

Question 17

A(n)________ comes to an end with a business cycle ________.

Accepted Answer

A recession is a period of economic decline marked by a decrease in GDP, unemployment, and business activity. It begins with a peak, which is the highest point in the business cycle, and ends with a trough, which is the lowest point in the cycle. Therefore, a recession comes to an end with a business cycle trough.

Question 18

When a recession ends,

Accepted Answer

When a recession ends, firms anticipate economic recovery and expansion, leading them to increase borrowing for investment in capital, inventory, and hiring to meet expected future demand.

Question 19

Explain how unemployment changes over the business cycle.Why do these changes occur?

Accepted Answer

The answer of Explain how unemployment changes over the business...

Question 20

In Canada,since the 1970s,expansions are more common than recessions.

Accepted Answer

This statement is true. According to data from Statistics Canada, Canada has experienced more years of economic expansion than contraction since the 1970s.

Quiz 6: Economic Growth, the Financial System, and Business Cycles

At the end of an expansion,wages of workers are usually rising faster than prices.

________ officially decides when a recession begins and ends.

Which of the following might make it a good idea for a business to expand during a recession?

When the economy reaches a trough in a business cycle,which of the following will occur?

A recession begins with a(n) in spending by firms on capital goods and a(n) in spending on durable goods by households.

Economists have not found a way to predict when recessions will begin and end.

How are unemployment,inflation,and the business cycle related?

The generally accepted definition of a recession is

As the economy nears the end of an expansion,interest rates usually ,and wages rise more than prices.

How have government policies and programs affected the volatility of the business cycle in Canada? Explain and provide at least two specific examples of policies or programs that may have had an impact.

The commonly accepted definition of a recession is at least two consecutive quarters of falling real GDP.

Because Bombardier produces expensive durable goods,the demand for their goods

A period of expansion in the business cycle ends when

Which of the following goods would see the largest decline in demand during a recession?

Which of the following goods would be most likely to see demand increase during a recession?

During the expansion phase of the business cycle,

A(n) comes to an end with a business cycle .

When a recession ends,

Explain how unemployment changes over the business cycle.Why do these changes occur?

In Canada,since the 1970s,expansions are more common than recessions.

Quiz 6: Economic Growth, the Financial System, and Business Cycles

At the end of an expansion,wages of workers are usually rising faster than prices.

________ officially decides when a recession begins and ends.

Which of the following might make it a good idea for a business to expand during a recession?

When the economy reaches a trough in a business cycle,which of the following will occur?

A recession begins with a(n) ________ in spending by firms on capital goods and a(n) ________ in spending on durable goods by households.

Economists have not found a way to predict when recessions will begin and end.

How are unemployment,inflation,and the business cycle related?

The generally accepted definition of a recession is

As the economy nears the end of an expansion,interest rates usually ________,and wages rise more ________ than prices.

How have government policies and programs affected the volatility of the business cycle in Canada? Explain and provide at least two specific examples of policies or programs that may have had an impact.

The commonly accepted definition of a recession is at least two consecutive quarters of falling real GDP.

Because Bombardier produces expensive durable goods,the demand for their goods

A period of expansion in the business cycle ends when

Which of the following goods would see the largest decline in demand during a recession?

Which of the following goods would be most likely to see demand increase during a recession?

During the expansion phase of the business cycle,

A(n) ________ comes to an end with a business cycle ________.

When a recession ends,

Explain how unemployment changes over the business cycle.Why do these changes occur?

In Canada,since the 1970s,expansions are more common than recessions.

A recession begins with a(n) in spending by firms on capital goods and a(n) in spending on durable goods by households.

As the economy nears the end of an expansion,interest rates usually ,and wages rise more than prices.

A(n) comes to an end with a business cycle .