CA Foundation Business Cycles — practice questions
27 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Business Cycles in the app →Recurring upward and downward swings in aggregate economic activity, reflected in measures such as national ouA distinctive characteristic of business cycle fluctuations, as described in the chapter, is that they:Which sequence lists the four phases of a typical business cycle in the order presented in the chapter?The lowest turning point of a business cycle, where overall production and employment touch the bottom, is theDuring the expansion phase, the type of unemployment that may still remain when resources are nearly fully empWhich of the following is NOT a feature of the expansion phase of a business cycle?At the peak of the business cycle, why do input prices tend to rise sharply?During contraction, producers initially fail to cut output promptly. What immediate consequence does the chaptDuring a deepening recession, why might consumers postpone their purchases even as producers cut prices?Depression is best characterised in the chapter as:A typical feature of depression described in the chapter is that interest rates fall, yet demand for credit stAccording to the chapter, the recovery process from a trough is FIRST felt in which market?An economic variable that changes before real output changes, used to anticipate the direction of the economy,Unemployment, the consumer price index and corporate profits are cited in the chapter as examples of which typWhich of the following is given in the chapter as an example of a coincident indicator?Which statement is NOT a common feature of business cycles as listed in the chapter?The chapter notes that business cycles do not affect all sectors uniformly. Which sectors does it identify as According to Keynes, fluctuations in economic activity are primarily caused by fluctuations in:Which component of aggregate demand does the chapter describe as the most volatile and a prime cause of busineThe view that the trade cycle is a purely monetary phenomenon driven by unplanned changes in the money supply The innovation theory, which holds that trade cycles arise from innovations introduced into the system from tiPigou explained business fluctuations chiefly in terms of:Which of the following is classified in the chapter as an EXTERNAL (exogenous) cause of business cycles?How does the chapter say population growth running faster than economic growth tends to affect the economy?Anti-inflationary macroeconomic measures such as cutting government spending and raising taxes and interest raBusinesses whose fortunes are closely tied to the rate of economic growth, such as house-builders and overseasWhich of the following did monetarist economists blame for the Great Depression of the 1930s, as noted in the