Economics
The Business Cycle
Unit 3, Lesson 2
What is the Business Cycle?
The business cycle is a period of economic
expansion followed by a period of contraction
Annual Percentage Change in U.S. Real
GDP (economic Growth) Since 1929
It’s a Recession, but is it a
Depression?
Recession– This is an
economic term
meaning 2 consecutive
quarters (6 months of
...
Different Impact on States
– Intensity of the
business cycle
varies from
region to region
across the U.S.
– Economically
d...
Business Cycles in a Global
Economy
Market economies around the world often move
together because of so much trade and
int...
Measuring the Business
Cycle: Economic Indicators
A set of key economic variables that
economists use to predict a new pha...
Types of Economic Indicators
Leading Indicators:
predict or show an
upcoming contraction or
expansion
– Stock Market
– Bui...
Types of Economic Indicators
Lagging Indicators
follow or trail
changes in overall
economic activity
– Consumer Prices
– U...
Oakland Schools Economics Moodle, Unit 3, Lesson 2
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Oakland Schools Economics Moodle, Unit 3, Lesson 2

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Oakland Schools Economics Moodle, Unit 3, Lesson 2

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  • Indicate MAJOR changes economic growth (real GDP) above or below “normal” levels.
    The peak, a high point in economic growth, is followed by a decline until the lowest point is reached called a trough.
    A recovery occurs as the economy starts expanding again, and prosperity occurs when economic growth exceeds the previous peak.
  • Oakland Schools Economics Moodle, Unit 3, Lesson 2

    1. 1. Economics The Business Cycle Unit 3, Lesson 2
    2. 2. What is the Business Cycle? The business cycle is a period of economic expansion followed by a period of contraction
    3. 3. Annual Percentage Change in U.S. Real GDP (economic Growth) Since 1929
    4. 4. It’s a Recession, but is it a Depression? Recession– This is an economic term meaning 2 consecutive quarters (6 months of negative growth rates) Depression– This is an historical term used to characterize a period in history of an extended and deep recession.
    5. 5. Different Impact on States – Intensity of the business cycle varies from region to region across the U.S. – Economically diverse regions usually do better in a recession
    6. 6. Business Cycles in a Global Economy Market economies around the world often move together because of so much trade and interdependence.
    7. 7. Measuring the Business Cycle: Economic Indicators A set of key economic variables that economists use to predict a new phase of the business cycle and identify trends in the economy
    8. 8. Types of Economic Indicators Leading Indicators: predict or show an upcoming contraction or expansion – Stock Market – Building Permits – Housing and Auto Sales – Earnings – Personal Savings – Consumer Expectations – Lending – Energy Costs
    9. 9. Types of Economic Indicators Lagging Indicators follow or trail changes in overall economic activity – Consumer Prices – Unpaid loans or indebtedness – Unemployment – Interest Rates – Retail Sales

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