Some Terms to Know The Business Cycle.

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Presentation transcript:

Some Terms to Know The Business Cycle

Slump Reduction in demand = slower output Confidence may begin to suffer

Recession Period of slow economic growth Output may decrease Firms may lose confidence = reduce investment Individuals save not spend

Recovery Between recession and a boom

Boom A period of fast economic growth. Increased demand = output high Low unemployment Increased investment = business confidence Consumer confidence = extra spending

Depression Severe recession Lasts longer

Unemployed men “riding the rails”

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