Practice Test


1) The term business cycle refers to-


2) . Expansion phase all but one of the following characteristics.


3) Which one of the following is not the characteristic of business cycle?


4) The turning points of the business cycle are


5) . _____ refers to the top or the highest point of business cycle.


6) Involuntary unemployment is almost zero in the _____ phase of business cycle.


7) The economy is said to be overheated at the _____ phase of business cycle.


8) There is large scale of involuntary unemployment in the _____ phase of business cycle.


9) Fall in the level of investments, fall in production,fall in employment, fall stock prices, etc. are found during _____ phase of business cycle.


10) All but one are the endogenous factors of business cycle


11) ._____is the severe form of recession withlowest level of economic activity.


12) Fall in the interest rates is a typical feature of _____.


13) During depression _____ industry suffer from excess production capacity.


14) The great depression of _____ caused enormous misery and human sufferings


15) The lowest level of economic activity is called _____


16) There is end of pessimism and the beginning of optimism at _____


17) Which of the following is not the features of business cycle?


18) The trough of a business cycle occur when _____ hits its lowest point.


19) Industries that are most adversely affected by business cycles are the _____


20) . _____ indicators change before the economy itself changes.


21) _____ indicators change after the economy as a whole changes.


22) Changes in stock prices, profit margins and profits, manufacturing activity, etc. are examples of _____ indicator.


23) A variable that moves later than aggregate economic activity is called _____


24) While _____ indicators forecast economic
fluctuation, _____indicators confirm the trends.


25) A variable that occur simultaneously with the business cycle movements is _____ indicator.


26) Coincident indicators show _____


27) At the time of Great Depression of 1930s, the global GDP fell by around _____


28) Which one of the following is not correct about business cycle?


29) Which of the following describes best a typical trade cycle?


30) Cost of living increases when business cycle is ----------


31) During upswing, the unemployment rate _____ and output _____


32) . Which of the following does not occur during expansion phase?


33) When aggregate economic activity is declining,the economy is said to be in _____


34) Which one of the following is not an example of coincident indicator?


35) Which one of the following is an example of lagging indicator?


36) ._____ is of the view that fluctuations in economic activities are because of fluctuations in aggregate effect demand.


37) High rate of investment brings _____


38) If any unemployment exists during expansion phase of business cycle, it is _____ unemployment.


39) The most probable outcome of increase in aggregate demand is _____


40) According to _____, a trade cycles is a purely monetary phenomena


41) Optimistic and pessimistic mood of the business community also affects the economic activities is the view of _____


42) According to _____ trade cycles occur due to onset of innovations


43) Business cycles appear due to present fluctuations in prices affecting the output and employment in future is _____


44) Production of _____ goods fall during the war times.


45) During war times most of the productive resources are diverted for the production of _____


46) Economic recession is characterized by all of the following except _____


47) Production of new and better goods and services using new technology results in _____


48) Understanding the business cycle is important for business managers because _____


49) Businesses whose fortunes are closely linked to the rate of economic growth called _____


50) If the population growth rate is higher than the economic growth rate it will result in _____


51) The term business cycle refers to


52) When does an economic expansion occur in the business cycle?


53) Increasing Prosperity and High standards of living are the characteristics of


54) The end of expansion is termed as -


55) The beginning of recession is


56) A significant decline in general economic activity extending over a period of time is


57) Severe form of recession is


58) The trough of a business cycle occurs when _____ hits its lowest point.


59) The lowest point in the business cycle is referred to as the


60) Even with lower rate of interest, demand for credit declines in


61) Which of the following statements is true?


62) Which of the following statement is not correct?


63) A leading indicator is


64) A variable that tends to move later than aggregate economic activity is called


65) Changes in housing interest rate is a


66) Unemployment is a


67) GDP is a


68) Industries that are extremely sensitive to the business cycle are the


69) A decrease in government spending would cause


70) Which of the following does not occur during an expansion?


71) Which of the following best describes a typical business cycle?


72) During recession, the unemployment rate ______ and output _______.


73) The four phases of the business cycle are


74) Leading economic indicators


75) When aggregate economic activity is declining, the economy is said to be in


76) Peaks and troughs of the business cycle are known collectively as


77) The most probable outcome of an increase in the money supply is


78) Which of the following is not a characteristic of business cycles


79) Economic recession shares all of these characteristics except.


80) The different phases of a business cycle


81) Which of the following is not an example of coincident indicator?


82) According to _______ trade cycles occur due to onset of innovations.


83) According to Keynes, Fluctuations in economic activity are due to fluctuations in


84) What is the cause for rise in investments?


85) Internal Cause for Business Cycle include


86) Rampant unemployment is found in:


87) Last stage of recession is called:


88) In the long run, a reduction in labour supply would cause output to ............ and the aggregate price level to ............


89) Which of the following macro economic variables would you include in an index of leading economic indicators?


90) The world economy suffered the longest, deepest and most widespread depression of the 20th century during?


91) Business cycle is contagious and ______ in character?


92) Which External Factor affect the business cycle?


93) Which internal factor affect the Business cycle?


94) Whose statement out of these is false?


95) When once peak is reached, increase in demand is salted, then ................. phase begins?


96) Fashion Retailer is business of?


97) Features of business cycles include?


98) Internal causes of depression includes


99) External factors for depression does not include:


100) ............. is the measurable economic factor that changes before economy starts to follow a particular pattern or trend:


101) The Rhythmic fluctuations in aggregate economic activity over a period of time are called:


102) During recession output:


103) Business cycles generally originate in:


104) During the slow down of economy,


105) The economic boom is characterised as period when:


106) Which macro economic variables are excluded from leading economic indicators:


107) Economics activities will be declining in the phase of ....


108) Business Cycle occurs


109) According to some economists, ..... are the prime causes of business cycles.


110) Which is not related to great depression of 1930 ?


111) Which of the following is not the phase of business cycles ?


112) Boom and depression in business cycle are


113) Which is not the characteristic feature of expansion phase in business cycle ?


114) "Modern business activities are based on the anticipations of business community and are affected by waves of optimism or pessimism" according to ......


115) Find the odd man out :
Which of these is not a coincident factor ?


116) Excess capacity in capital industries leads to


117) Here, growth moves in reverse direction


118) Frictional unemployment exists in


119) In which stage maximum production occurs.


120) Unemployment is caused due to structural changes is known as ?


121) Al trough production is ?


122) Stae at which actual demand is stragnated ?


123) A change of reaction producer cancel their order in which, stage ?


124) Which of the following is true :


125) China's recent slowdown caused


126) What of the following are not external causes ?


127) Modern business activities are based on the anticipations of business community and are affected by waves of optimism (or) Pessimism is said by :


128) Which of the following phase occurs after threat and before peak ?


129) Which indicators coincide as occur simultaneously with the business cycle movements ?


130) What is the most visible sign of recession in an economy ?


131) Taxation policy of government is the past of :


132) During the phase of tough of business cycle, the growth rate become :


133) Which of the following is an internal cause of business cycles ?


134) During the phase .... there is fall in level of investment and employment.


135) The most important feature of business cycle is :


136) Feature of .... is fall in interest rates and people's demand for holding liquid money.


137) Business that are more vulnerable to charges in business cycle and whose fortunes are closely linked to rate of economic growth are called as .....


138) According to law trey, which of the following is correct ?


139) Coincident indicators are also known as ....


140) Business cycle is contagious and .... in character ?


141) The world economy suffered the congest deepest and most widespread depression of the 20th century during :


142) Variable that change before the real output change are called as :


143) Variables that change after real output changes are known as :


144) In which of the following phase of a business cycle, actual demand stagnates ?


145) In a typical business cycle, in which phase supply exceeds demand ?


146) The rhythmic Fluctuations in aggregate economic activity that an economy experiences over a period of time is called :


147) Which phase of business cycle is characterised by increase in national output, employment, aggregate demand, capital and consumer expenditure sales, profits etc. ?


148) Coincident economic indicators are also known as :


149) Which of the following is not a feature of business cycle ?


150) Excess capacity in capital industries leads to


151) According to whom "Business Fluctuation are the outcome of some Psychological states of mind of business community" ?