1. The Business Cycle

3. PROSPERITY: Lots of business activity
A lot is being produced, and a lot is being bought and sold

4. wages, prices and profits are high
PROSPERITY:
wages, prices and profits are high

5. PROSPERITY:
Unemployment is low
Many people have jobs

6. PROSPERITY:
there is a general “feeling” that things are good and will continue to be good

7. Recession: business activity begins to slow down
less is being produced, less is being bought and sold

8. wages, prices, and profits begin to fall
Recession:
wages, prices, and profits begin to fall

9. unemployment begins to rise People have a harder time finding a job
Recession:
unemployment begins to rise
People have a harder time finding a job

10. uncertainty; people aren’t sure what is going to happen next
Recession:
uncertainty; people aren’t sure what is going to happen next

11. Depression: business activity is low
little is being produced, and little is being bought and sold

12. wages, prices and profits are low
Depression:
wages, prices and profits are low

13. Many people can not find jobs
Unemployment is high
Many people can not find jobs
Depression:

14. There is a general “feeling” of gloom and hopelessness
Depression:
There is a general “feeling” of gloom and hopelessness

15. Business activity begins to improve
Recovery:
Business activity begins to improve
more is being produced, more is being bought and sold

16. wages, prices, and profits begin to rise
Recovery:
wages, prices, and profits begin to rise

17. unemployment begins to fall
Recovery:
unemployment begins to fall

18. “feeling” that things are getting better
Recovery:
“feeling” that things are getting better