1. Business Cycles

2. Business Cycles Peak Expansion (recovery) Contraction -Can lead to
A recession
Trough
-can lead to a depression

3. Business Cycles Expansion (recovery) – Rise in GDP Plenty of jobs
Falling unemployment
Business prosperity

4. Business Cycles Peak – height of economic expansion Contraction
Falling GDP – fewer goods/services produced this yr than last
Rising unemployment
Can lead to a recession (prolonged contraction)
Trough
– lowest point of the economy
-can lead to a depression (extended recession)
-high unemployment & low GDP

5. What affects a business cycle
Business Investment
Interest rates
Consumer expectations
External shocks