1. The Business Cycle Introduction to Business & Marketing
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Introduction to Business & Marketing

2. Task 44
Define the phases of the business cycle.

3. The Business Cycle Rise & fall of economic activity over time
Economies naturally go through “ups” and “downs”
U.S. economic slumps in 1930s, 50s, 70s and 00s
Caused a fall in economic activity & rise in unemployment
The economy may be influenced by war, foreign competition, changes in technology, changes in consumer wants, etc.

4. The Business Cycle
Economic downturns/slumps are followed by new waves of increased productivity & increased GDP
The economy has been influenced by:
War
Foreign competition
Changes in technology
Changes in consumer wants
The economy may be influenced by war, foreign competition, changes in technology, changes in consumer wants, etc.

5. The Business Cycle Prosperity Recovery Recession Depression
The economy may be influenced by war, foreign competition, changes in technology, changes in consumer wants, etc.

6. Prosperity Peak of the economy when demand is high
High level of production (GDP) and income / profits
Low level of unemployment
Consumers are spending

7. Recession Decline in the economy during which demand starts to fall
Steady decline in production (GDP) and income / profits
Increasing unemployment rate
Consumers start to save their money

8. Depression Contraction of the economy when demand is low
Lowest levels of production (GDP) and income / profit
High level of unemployment
Consumers are saving their money

9. Recovery Expansion of the economy when demand starts to rise
Steady increase in production (GDP) and income / profit
Decreasing unemployment rate
Consumers are starting to spend their money again

10. Entrepreneurs Who Rose from the Ashes
Case Study on VISION