The business cycle consists of four phases. At the top we have:
A. expansion, followed by peak, and then trough followed by a recession.
B. expansion, followed by a recession, and then peak followed by recession.
C. peak, then a trough followed by a recession, and then expansion.
D. peak, then a recession followed by a trough, and finally, recovery.
Answer: D
You might also like to view...
The passage of the Smoot-Hawley Tariff in 1930 sparked a trade war that caused net exports to ________ and real GDP to ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Which of the following was not a major area addressed by the Dodd-Frank Bill (i.e., Wall Street Reform and Consumer Protection Act of 2010)
a. Reducing systemic threats to the U.S. financial system. b. Solving the "too big to fail" problem in the U.S. financial system. c. Preventing spillover effects in the financial industry. d. Ensuring that investment banks and others reduced the amount of "skin in the game" they in the mortgage industry.