Business Cycles Practice Test

Country D reports the following real GDP levels (in billions of chained dollars).

Based on the real GDP data shown, which interval best represents a recovery from a trough?

Real GDP levels: 2020:Q2 = 12,000; 2020:Q3 = 11,700; 2020:Q4 = 11,650; 2021:Q1 = 11,720; 2021:Q2 = 11,900

Country F reports real GDP (in billions of chained dollars) and private investment (in billions) for selected quarters.

Based on the data shown, which business cycle phase best describes 2023:Q1?

Data: 2022:Q3 real GDP = 21,000; investment = 3,200. 2022:Q4 real GDP = 20,900; investment = 3,050. 2023:Q1 real GDP = 20,700; investment = 2,800. 2023:Q2 real GDP = 20,650; investment = 2,750.