Question 1
The term 'business cycle' refers to the
◦ short-term ups and downs in the price level.
◦ long-term trends in the price level.
◦ long-term trends in the level of economic activity.
◦ short-term ups and downs in the economy.
Question 2
A period of two or more quarters during which aggregate output declines is known as
◦ a boom.
◦ a hyperinflation.
◦ a recession.
◦ an inflation.