Effects of Business Cycles (Grade 10 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does aggregate demand refer to in the context of business cycles?
What does aggregate demand refer to in the context of business cycles?
What consumers want to buy
What happens to aggregate supply during economic expansion?
What happens to aggregate supply during economic expansion?
It expands to meet growing demand
How does GDP change during the contraction phase of a business cycle?
How does GDP change during the contraction phase of a business cycle?
GDP shrinks
What happens to unemployment rates during economic expansion?
What happens to unemployment rates during economic expansion?
Unemployment rates fall
Why do companies reduce their workforce during economic contraction?
Why do companies reduce their workforce during economic contraction?
To cut costs
When does inflation typically occur in the business cycle?
When does inflation typically occur in the business cycle?
During expansion and early prosperity
What is stagflation?
What is stagflation?
Economic stagnation combined with high prices
What happens to the rand during expansion and boom phases?
What happens to the rand during expansion and boom phases?
It appreciates (becomes stronger)
How does a weaker rand affect imported goods?
How does a weaker rand affect imported goods?
Makes imports more expensive
Why are business cycle effects described as self-reinforcing?
Why are business cycle effects described as self-reinforcing?
Changes snowball either positively or negatively