Stages of the Business Cycle
Causes of the Business Cycle
Predicting Business Cycles
100
The highest point of real GDP.
What is the peak?
100

True or False: When the economy is expanding, businesses invest highly in capital goods.

What is true?

100
A macroeconomic model that uses algebraic equations to explain the behavior of economic trends.
What is an econometric model?
200
The lowest point in the trend line. Also referred to as the "turn around" point.
What is trough?
200

True or False: Businesses cut back or gain their business inventories during a recession or depression.

What is true?

200
The equation that most models used today are based off of.
What is GDP = C + I + G + (X - M)
300
When real GDP declines for two quarters in a row. (6 months)
What is recession?
300

A new product or a new way of performing a task has entered the market.

What is innovation or technology?

300
A tool used to predict the turning points within the business cycle.
What is the index of leading indicators?
400
A state where a large number of people are out of work and there are acute shortages.
What is depression?
400

Wars, increase in oil prices, international conflict, etc.

What is external shocks?

400
Neil Peart produced 2 albums in honor of this great drummer.
What is Buddy Rich?
500
The period of recovery from recession.
What is expansion?
500

COVID caused this business cycle.

What is recession?

500
The airport destination in Toronto, Canada. Also the name of a Rush song from Moving Pictures.
What is YYZ?
M
e
n
u