Business Cycles Unit 12.2.

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Presentation transcript:

Business Cycles Unit 12.2

What is a Business Cycle? Expansion Economic Growth Peak Contraction Recession Depression Stagflation Trough

Aggregate Demand and Supply Aggregate Supply Macroeconomic Equilibrium

Why Do Business Cycles Occur? Business Decisions Demand Slump New Technology Changes in Interest Rates Consumer Expectations External Issues

Predicting Business Cycles Leading Indicators Orders for building permits Orders for durable goods Stock Prices Baltic Dry Index Coincident Indicators Lagging Indicators

Business Cycles in History Great Depression Great Recession

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