The Business Cycle (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does GDP measure in the economy?
What does GDP measure in the economy?
Total output in the economy
Which of the following best describes a boom in the business cycle?
Which of the following best describes a boom in the business cycle?
Peak with rapid GDP growth & rising demand
How is a recession technically defined?
How is a recession technically defined?
Two consecutive quarters of negative GDP
During a downturn, what happens to GDP?
During a downturn, what happens to GDP?
Continues to grow but at slower rate
What characterizes the recovery phase of the business cycle?
What characterizes the recovery phase of the business cycle?
Businesses & consumers regain confidence
Which businesses benefit most during a boom?
Which businesses benefit most during a boom?
Non-essential & luxury item sellers
Why do business profits typically increase during a boom?
Why do business profits typically increase during a boom?
Demand rising, easier to raise prices
Why is employment considered a lagging indicator?
Why is employment considered a lagging indicator?
It rises after recession ends
According to Keynes, what directly affects investment decisions?
According to Keynes, what directly affects investment decisions?
Business confidence levels
Which businesses are most at risk during recessions?
Which businesses are most at risk during recessions?
Inefficient firms with cash-flow issues