In the Context of the Business Cycle, Which of the Following

question 107

Multiple Choice

In the context of the business cycle, which of the following statements is true of the period of economic contraction?

• A) Consumers shift their buying patterns to more basic products.
• B) The dropping prices increase the sales of luxury goods and services.
• C) Businesses start producing more goods to support the economy.
• D) The economic feel-good factor brings in a lot of investment.

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Definitions:

Role Underload

Disruptive amount of stress that can occur when people experience too little to do.

Role Overload

A burdensome workload that creates stress for a person in two ways: (1) the person may become fatigued and less able to tolerate annoyances and irritations and (2) a person subject to unreasonable work demands may feel perpetually behind schedule, a situation that itself creates an uncomfortable, stressful feeling.

Internal Locus

The belief that one controls one's own destiny and outcomes are a result of one's own efforts.

Stress

A physical or emotional response to external or internal pressures, challenges, or demands.