1. Starter -The Business Cycle:
Can we remember what the different stages of the Business cycle were?
GDP
Boom
Recession
Peak
Trough
Time

2. Let us look in more detail at how firms are affected by booms and recessions.
Most firms do well during Booms because the Demand for their products increases.
However, it can be more difficult to recruit workers during a boom because jobs are easier to find and there are fewer unemployed people looking for work. Firms may have to offer better pay or conditions in order to attract workers.

3. Also - land, raw materials etc. can be cheaper to buy.
Let us look in more detail at how firms are affected by booms and recessions.
Most firms do badly during Recessions because the Demand for their products decreases
However, it is often easier to recruit people because there are plenty of unemployed people looking for work.
Also - land, raw materials etc. can be cheaper to buy.

4. In pairs, discuss then write down answers to the questions below:
Paired Questions:
Summary:
In pairs, discuss then write down answers to the questions below:
What can businesses do to avoid the worst impacts of recessions?
How does the business cycle impact upon businesses?
Extension:
Why do some firms benefit from increased trade during recessions?
You have 5 minutes

5. Begin P5 Prep work
Slide 1 – An introduction which describes what the economy is and what it involves
Slide 2 – An illustration and description of the different stages in an economic cycle
You have 5 minutes

6. MOST will be able to explain how GDP is calculated
Title and LO: How are businesses organised?
Learning Objectives
All will be able to define what the term GDP means and identify the current level of GDP in the UK
MOST will be able to explain how GDP is calculated
SOME will be able to discuss how a high GDP is likely to impact a business.
Working towards: P5 “describe the influence of two contrasting economic environments on business activities within a selected
Organisation”

7. Starter 2: Write a definition of the word recession
“A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters.”

8. So what is a recession?:
“A recession occurs when the level of gross domestic product declines over two successive quarters causing a contraction in the total volume of production in the economy.”
“A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters.”

9. So what is a recession?:

10. Gross Domestic Product
So what is a GDP?:
Gross Domestic Product
“A measure of a country's economic activity, namely of all the services and goods produced in a year “

11. So what is a GDP?: GDP can be measured in three ways:
Output measure: This is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government
Expenditure measure: This is the value of the goods and services purchased by households and by government, investment in machinery and buildings. It also includes the value of exports minus imports
Income measure: The value of the income generated mostly in terms of profits and wages.
In theory all three approaches should produce the same number.
In the UK the Office for National Statistics (ONS) publishes one single measure of GDP which, apart from the first estimate, is calculated using all three ways of measuring.

12. Research Task:
1) What is the UK’s current level of GDP? Use to find out.
2) Which countries do you think have a higher GDP?
a) Find out which countries have a higher GDP than the UK.
b) Is there any country that surprises you? Why does this surprise you?

13. List by the World Bank (2009)
Research Task:
Rank
Country
GDP (PPP) $M —
 World 1
 United States
16.8 trillion
  Eurozone
20.5 2
 People's Republic of China
9.24 3
 Japan
5.1 4
 India
2.0 5
 Germany
3.6 6
 Russia
2.1 7
 United Kingdom
2.7 8
 France
2.8 9
 Brazil
2.2 10
 Italy
List by the World Bank (2009)

14. GDP TRACKER

15. Tesco’s, GDP and the recession:
2008
2010
2012
Tesco’s hit by the recession:
Tesco’s recovery: