The document discusses the business cycle, which consists of periodic expansions, peaks, contractions, and troughs in economic activity. During an expansion, the economy grows with increasing production, employment, and business starts. A peak occurs when growth reaches its maximum, followed by a contraction where activity declines. A trough is the low point with reduced output, jobs, and new ventures, which can be considered a recession if prolonged. Standard of living, GDP, inflation, and the CPI are also covered.

1. Business Cycle
The periodic and cyclical ups and
downs of the economy

2. Business Cycle
The periodic and cyclical ups and
downs of the economy

3. Expansion Period
-phase where the economy is growing
-amount of goods produced?
-number of jobs produced?
-number of business starts

4. Peak Period
-phase where the economy has
reached its peak of growth
-amount of goods produced?
-number of jobs produced?
-number of business starts

5. Contraction Period
-phase where the economy is
starting to decline from its peak
activity
-amount of goods produced?
-number of jobs produced?
-number of business starts

6. Trough Period
-phase where the economy has
reached its lowest point
-amount of goods produced?
-number of jobs produced?
-number of business starts
-recession is an extended trough
period

7. Standard of Living
-Standard of Living
-a measure of how well a person
lives as wee as the amount of free
time they have
-Gross Domestic Product
-the value of all goods and services
produced in a nation in a given year
-Why do we compare GDP with
previous years?

8. Inflation Concerns
-Inflation
-a general increase in the cost of
goods and services
-Why is inflation a bad thing for the
economy?
-Consumer Price Index-- Survey of
many goods and services that are
compared to the same goods and
services over time to measure the
increase or decrease in prices
-Controlling Inflation