Understanding the Business Cycle
Published on Apr 26, 2016
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PRESENTATION OUTLINE
The Business Cycle
Econ 3.1, Today's Theme is
A graphic representation of the fiscal activity of an economy over a period of time.
Recovery or Expansion
a period when business activity surges and gross domestic product expands until it reaches a boom or peak.
the highest point of expansion, but marks the start of a contraction in a business cycle.
Recession or Contraction
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Recession or Contraction
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Real GDP and the economy as a whole declines.
Slump or Trough
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Lowest point, marks the end of a period of declining business activity and the transition to expansion.
How do you know where to plot the phase on the cycle
a piece of economic data that is used to interpret current or future investment possibilities or to judge the overall health of an economy.
Untitled Slide
Get a slate, a rag, your dry board marker and your Business Cycle chart.
Write down which phase
Unemployment is rising
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Recession
or
Contraction
Businesses are laying off workers
Photo by david_shankbone
Recession
or
Contraction
Businesses are hiring
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Expansion
or
Recovery
Trough
or
Slump
Orders for new houses are declining dramatically
Photo by Garreth Wilcock
Contraction
or
Recession
more money is available
Photo by Nathan Congleton
Expansion
or
Recovery
occurs during the final month of its expansion
Photo by Paul B. (Halifax)
Peak
or
Boom
GDP is at its highest
Photo by Leader Nancy Pelosi
Expansion
or
Peak
Contraction
or
Recession
the general population has more money available to purchase things
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