Question

If an economy is experiencing low growth and combined with high unemployment, which phase of the business cycle is likely?(1 point)

Trough

Peak

Contraction

Expansion
What is the minimum number of quarters with successive declines in real GDP that must occur before an economy is considered to be in a recession?(1 point)

One

Two

Three

Four or more
North Carolina has seen major damage from Hurricane Helene. This has had a profound effect on the economy in North Carolina. What is this an example?(1 point)

Static effects

Shock

Recession

Depression
How can GDP increase?(1 point)

An increase in the prices of goods and services.

An increase in the quantity of goods and services.

Both A and B.

Neither A and B.

Answer 1

1) Trough — characterized by very low output and high unemployment.

2) Two — the common rule of thumb is two consecutive quarters of declining real GDP.

3) Shock — a natural disaster is an economic shock (a sudden adverse event).

4) Both A and B — GDP can rise from higher prices (nominal GDP) or from producing more goods/services (real GDP).