Think about itWhat effects of the recession have you seen

locally? What about the Metro area? Have you seen any signs that our recession is ending?

StandardSSEMA1e- Define and label stages of the

business cycle.

Business Cycles in the United StatesWe interpret economic growth with business

cycles.There are two phases to the business cycle.

Which phase is this?

How do we know it’s a business cyclesGDP goes up two quarters in a row =

expansionGDP goes down two quarters in a row =

recession

Phases of the business cyclesExpansion- a period of recovery from recession

Recession- A period in which real GDP declines two quarters in a row

Business cyclePeak = Real GDP stops going up

Trough= the turning point when Real GDP stops going down

DepressionA depression occurs when a recession

becomes severe.This is a state of the economy with large

numbers of unemployed, acute shortages, and excess capacity in manufacturing plants.

Causes of the Business Cycle1. Capital Expenditures2. Inventory Adjustments3. Innovation and Invention4. Monetary Policy-Federal Reserve5. External shocks

Out of the Box-EvaluationPretend you are an economic advisor to the

president.Explain to the president what business cycle

we are in.Next look at the factors that cause the

business cycle. Explain which of those factors may have contributed to our current condition, and why did you choose those.

Lastly, what should the government do to fix the economy?

As I read…Underline any statement that might show

slowing economic growth or what caused our recession. This article is yours to keep.

When you are complete…Choose:1. Create a brochure explaining:

The problems that a recession creates What is the government doing to encourage

economic growth? The signs of a recession

ORCreate your own news article explaining

the three things listed above under the brochure. This should be at least a page long.