The Business Cycle.

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Presentation transcript:

The Business Cycle

PROSPERITY: Lots of business activity A lot is being produced, and a lot is being bought and sold

wages, prices and profits are high PROSPERITY: wages, prices and profits are high

PROSPERITY: Unemployment is low Many people have jobs

PROSPERITY: there is a general “feeling” that things are good and will continue to be good

Recession: business activity begins to slow down less is being produced, less is being bought and sold

wages, prices, and profits begin to fall Recession: wages, prices, and profits begin to fall

unemployment begins to rise People have a harder time finding a job Recession: unemployment begins to rise People have a harder time finding a job

uncertainty; people aren’t sure what is going to happen next Recession: uncertainty; people aren’t sure what is going to happen next

Depression: business activity is low little is being produced, and little is being bought and sold

wages, prices and profits are low Depression: wages, prices and profits are low

Many people can not find jobs Unemployment is high Many people can not find jobs Depression:

There is a general “feeling” of gloom and hopelessness Depression: There is a general “feeling” of gloom and hopelessness

Business activity begins to improve Recovery: Business activity begins to improve more is being produced, more is being bought and sold

wages, prices, and profits begin to rise Recovery: wages, prices, and profits begin to rise

unemployment begins to fall Recovery: unemployment begins to fall

“feeling” that things are getting better Recovery: “feeling” that things are getting better

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