1. Business Cycles
In the summer of 1929, John J. Raskob, Senior Financial Officer of General Motors, declared that the United States was on the verge of the greatest industrial expansion in its history.

2. [ 7.2 ] Business Cycles Learning Objectives
Analyze business cycles using economic data.
Describe four factors that keep business cycles going.
Explain how economists predict changes in business cycles.
Analyze the impact of business cycles in U.S. history.

3. Business Cycle Phases
What is the point of slowest business activity in a business cycle called?

4. Forecasting Business Cycles
How do expectations by business leaders and consumers contribute to a recession?

5. Forecasting Business Cycles
Economists try to predict business cycles by studying the activity of certain leading indicators.
Stock Prices
Interest Rates
Production of Capital Goods

6. Business Cycles in History
Periods of growth always are followed by period of decline

7. Business Cycles in History

8. Business Cycles in History

9. Business Cycles in History

10. Business Cycles in History

11. Quiz: Business Cycle Phases
When real GDP stops rising, the economy has reached a __________.
A. recession
B. trough
C. contraction
D. peak

12. Quiz: What Drives Business Cycles?
When the economy is expanding, which of the following is a business MOST likely to do?
A. invest in new equipment
B. lay off employees
C. cancel new product development
D. close its international branches

13. Quiz: Forecasting Business Cycles
Which of the following did John J. Raskob prove?
A. Business cycles always follow a repetitive pattern.
B. Only experienced business leaders can forecast business cycles.
C. It is not always possible to forecast a business cycle.
D. Any business cycle can be predicted by a skilled forecaster.

14. [ 7.2 ] Business Cycles Learning Objectives
Analyze business cycles using economic data.
Describe four factors that keep business cycles going.
Explain how economists predict changes in business cycles.
Analyze the impact of business cycles in U.S. history.