Start learning →

CA Foundation Business Cycles — practice questions

Explore 55 free Business Cycles questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise Business Cycles with Quill →

Business Cycles questions and exercises with answers

Showing questions 1–30 of 55.

Typically, the periodicity of business cycles ranges from about:Read the answer and worked solution →The simplest definition of a recession is:Read the answer and worked solution →The Kitchin cycle is an inventory cycle lasting about:Read the answer and worked solution →The Juglar fixed-investment cycle lasts about:Read the answer and worked solution →The Kuznets infrastructural investment cycle, also called the building cycle, lasts about:Read the answer and worked solution →The Kondratiev wave, a long technological cycle, lasts about:Read the answer and worked solution →Economist Clement Juglar first identified economic cycles in the year:Read the answer and worked solution →In Schumpeter's four-stage Juglar cycle, stock exchange crashes and many bankruptcies mark the stage of:Read the answer and worked solution →In Schumpeter's cycle, falling prices and output with high interest rates describe:Read the answer and worked solution →Sismondi's 1819 work was the first systematic exposition of:Read the answer and worked solution →The Panic of 1825 is described as the first inarguably international crisis that occurred:Read the answer and worked solution →Sismondi and Robert Owen blamed economic cycles mainly on:Read the answer and worked solution →Henry George proposed which remedy for crises driven by land speculation?Read the answer and worked solution →Karl Marx claimed that periodic capitalist crises were:Read the answer and worked solution →The now standard definition of business cycles (1946) was given by:Read the answer and worked solution →In the Burns and Mitchell definition, business cycles vary in duration from over one year to:Read the answer and worked solution →The NBER defines an expansion as the period running from a:Read the answer and worked solution →The NBER Business Cycle Dating Committee identifies peaks and troughs:Read the answer and worked solution →Series used to infer the business cycle are grouped as lagging, coincident and:Read the answer and worked solution →Hamilton linked most post-war recessions to an increase in the price of:Read the answer and worked solution →Which school argues that business cycles come from exogenous causes?Read the answer and worked solution →The Keynesian school argues that business cycles have:Read the answer and worked solution →Supporters of exogenous causes of crises generally favour:Read the answer and worked solution →The exogenous view of the cycle dates back to the law formulated by:Read the answer and worked solution →In 1927, Eugen Slutzky showed that summing random numbers could produce:Read the answer and worked solution →Simple Keynesian models give cyclical responses through the multiplier and the:Read the answer and worked solution →Import spending is described as procyclical, meaning it generally:Read the answer and worked solution →During a recession, spending on imported goods and services typically:Read the answer and worked solution →The debt deflation theory of the Great Depression is credited to:Read the answer and worked solution →The Financial Instability Hypothesis of business cycles is due to:Read the answer and worked solution →

Worked practice questions

Typically, the periodicity of business cycles ranges from about:

  1. 2 to 10 years
  2. 20 to 30 years
  3. 40 to 50 years
  4. 1 to 6 months
Show answer and solution

Correct answer: A. 2 to 10 years

Expansions and recessions usually recur over a medium-term span of roughly two to ten years.

Open this question →

The simplest definition of a recession is:

  1. One quarter of zero inflation
  2. Two quarters of negative GDP growth
  3. A fall in share prices for a month
  4. Three years of high unemployment
Show answer and solution

Correct answer: B. Two quarters of negative GDP growth

The simplest rule treats two consecutive quarters of falling GDP as a recession, though broader indicators are preferred.

Open this question →

The Kitchin cycle is an inventory cycle lasting about:

  1. 7 to 11 years
  2. 15 to 25 years
  3. 3 to 5 years
  4. 45 to 60 years
Show answer and solution

Correct answer: C. 3 to 5 years

Joseph Kitchin identified the short inventory cycle of about three to five years.

Open this question →

How to practise

  1. Choose a Business Cycles question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Business Cycles practice for CA Foundation. Read explanations as you go. No signup form needed to start.

Practise Business Cycles →

More Business Economics topics

EconomicsPrice-Output Determination under Different Market FormsPublic FinanceSupplyLaw of DemandInternational TradeBasic Problems of an Economy and Role of Price MechanismProduction And Cost