1. How Do Business Cycles Affect Small Businesses?
Unit 1
Topic 1.5.4

2. Lesson Objectives
Must learn: understand what is the business cycle and what it consists of
Should learn: that economic activity tends to rise and fall and the reasons for this
Could learn: the effects on businesses when there are changes in economic activity

3. What is Economic Activity?
Starter
Write what you think:-
What is Economic Activity?

4. Starter – Key Terms

5. The Business Cycle

6. Key Term

7. What Happens at each stage?

8. The Business cycle Output of UK firms Average Growth Boom
Actual Growth
Boom
Recession
Time

9. Effects of Economical Activity

10. The Effect of the Cycle On Firms

11. Task - Business and the state of the economy?
Boom
Recession
Definition
When there is a lot of spending in the economy
When spending in the economy falls
What happens to……
unemployment?
consumer spending?
inflation (prices) ?
share prices ?
living standards?
how people feel?
Businesses which
do well

12. What happens to …… unemployment?
Task - Business and the state of the economy?
Boom
Recession
Definition
When there is a lot of spending in the economy
When spending in the economy falls
What happens to …… unemployment?
…..consumer spending?
……inflation (prices) ?
…..share prices ?
…..living standards?
…..how people feel?
Businesses which
do well
Most. Businesses selling luxuries do well
Businesses selling necessities do well

13. Mini Plenary

17. Plenary

18. Plenary

19. Homework
Draw the Business Cycle and explain each stage of it in detail with examples.
(5 Marks)