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Business cycle Quiz

1. A business cycle is characterised by --------waves of expansion and contraction 2. 3 basic characteristics of business cycles: periodicity, ______, and ______ _______. 3. 4 phases: Expansion, peak, _______ and trough 4. ______is the stage beyond which no expansion is possible-sees the downward turning point 5. Contraction marks the onset of _______. 6. In ________ phase all macro economic variables like output, employment, income and consumption increase
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Business cycle Quiz


1. A business cycle is characterised by periodic waves of expansion and contraction 2. 3 basic characteristics of business cycles: periodicity, synchronism, and self- reinforcing 3. 4 phases: Expansion, peak, contraction and trough 4. Peak or boom is the stage beyond which no expansion is possible-sees the downward turning point 5. Contraction marks the onset of recession 6. In expansion phase all macro economic variables like output, employment, income and consumption increase
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1. Gap between two cycles can be predicted with certainty. (T/ F) 2. Increase in investment brings ________ times increase in incomes. 3. During recession, the govt usually uses _______ ______ as a tool for recovery. 4. The buying and selling of govt securities is known as ________________.
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1. Gap between two cycles can NOT be predicted with certainty. 2. Increase in investment brings multiplier times increase in incomes 3. During recession the govt usually uses public expenditure as a tool for recovery. 4. The buying and selling of govt securities is known as open market operations.
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Quiz
1.All of the following is true of recession exceptA) Unemployment b) excessive inventory c) unused capacity d) rising business confidence 2. The monetary tools in the hands of a central bank include all the following except: a)Rediscount rate b) Reserve ratios c) Public revenue d) Open market operations 3. Expansion in a business cycle is generally accompanied by a) Deflation b) Inflation c) Negative growth d) None of the above

Quiz
1. All of the following is true of recession exceptA) Unemployment b) excessive inventory c) unused capacity d) rising business confidence 2. The monetary tools in the hands of a central bank include all the following except: a)Rediscount rate b) Reserve ratios c) Public revenue d) Open market operations 3. Expansion in a business cycle is generally accompanied by a) Deflation b) Inflation c) Negative growth d) None of the above

A situation in which wages chase prices and prices chase wages in known as __________. A price rise caused by an increase in the price of raw materials, electricity, fuel may be termed as _________inflation. Inflationary pressure that is built due to an increase in money supply, disposable income increase in population of the country or increase in aggregate spending is termed as _________ inflation.
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A situation in which wages chase prices and prices chase wages in known as wage spiral. A price rise caused by an increase in the price of raw materials, electricity, fuel may be termed as cost push inflation. Inflationary pressure that is built due to an increase in money supply, disposable income increase in population of the country or increase in aggregate spending is termed as demand pull inflation.
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