MACRO CHAPTER 10 TEST QUESTIONSChapter 10Short-Term Economic Fluctuations Multiple Choice Questions1.A period in which the economy is growing at a rate significantly below normal is called a(n):A.expansion.B.boom.C.peak.D.recession.2.An informal definition of a recession is at least _ consecutive quarters of declining real GDP.A.2B.4C.6D.83.During recessions, the change in real GDP is:A.always positive.B.always negative.C.usually positive, but can be negative.D.usually negative, but can be positive.4.A depression is:A.a particularly severe and protracted recession.B.the high point of economic activity prior to a downturn.C.the low point of economic activity prior to a recovery.D.a particularly strong and protracted expansion.5.In reference to short-term economic fluctuations, the peak refers to:A.a period in which the economy is growing at a rate significantly above normal.B.the high point of economic activity prior to a downturn.C.the low point of economic activity prior to a recovery.D.a particularly strong and protracted expansion.6.In reference to short-term economic fluctuations, the trough refers to:A.a period in which the economy is growing at a rate significantly below normal.B.the high point of economic activity prior to a downturn.C.the low point of economic activity prior to a recovery.D.a particularly strong and protracted expansion.7.The end of a recession is called the:A.trough.B.expansion.C.peak.D.boom.8.The beginning of a recession is called the:A.depression.B.expansion.C.peak.D.trough.The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.9.Which of the turning points are peaks?A.(A), (B), and (C)B.(C), (D), and (E)C.(A), (C), and (E)D.(B) and (D)10.Which of the turning points are troughs?A.(A), (B), and (C)B.(C), (D), and (E)C.(A), (C), and (E)D.(B) and (D)11.Which of the following periods was a recession?A.July 1953 through May 1954B.May 1954 through April 1957C.July 1953 through April 1957D.May 1954 through April 195812.Which of the following periods was an expansion?A.July 1953 through May 1954B.May 1954 through April 1957C.July 1953 through April 1957D.May 1954 through April 195813.The duration of a recession is from:A.peak to trough.B.trough to peak.C.peak to peak.D.trough to trough.14.An expansion is:A.a period in which the economy is growing at a rate significantly below normal.B.a period in which the economy is growing at a rate significantly above normal.C.the high point of economic activity prior to a downturn.D.the low point of economic activity prior to a recovery.15.A boom is:A.a period in which the economy is growing at a rate significantly below normal.B.the high point of economic activity prior to a downturn.C.a particularly severe and protracted recession.D.a particularly strong and protracted expansion.16.A period in which the economy is growing at a rate significantly above normal is called a(n):A.depression.B.expansion.C.peak.D.recession.17.In the United States since 1929 the duration of recessions on average has been:A.longer than the duration of expansions.B.shorter than the duration of expansions.C.about the same duration as expansions.D.shorter than the duration of expansions before World War II, but longer afterwards.18.The longest and most severe recession in the United States since 1925 began in _.A.1929B.1945C.1957D.198219.The longest expansion of the United States economy since 1925 began in _.A.1991B.1945C.1961D.198220.The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time: Which of the following periods was an expansion?A.February 1961 through December 1969B.December 1969 through November 1970C.November 1970 through March 1975D.December 1969 through November 197321.The duration of an expansion is from:A.peak to trough.B.trough to peak.C.peak to peak.D.trough to trough.22.Economic activity moves from a period of expansion to a _ and then moves into a period of _ until it reaches a _.A.peak; expansion; troughB.peak, recession; troughC.trough; expansion; peakD.trough; recession; peak23.Economic activity moves from a trough into a period of _ until it reaches a _ and then into a period of _.A.expansion; trough; recession.B.recession; trough; expansionC.expansion; peak; recessionD.recession; peak; expansion24.Since 1925, the longest recession in the United States lasted:A.10 years.