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Business Cycles Unit 12.2.

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Presentation on theme: "Business Cycles Unit 12.2."— Presentation transcript:

1 Business Cycles Unit 12.2

2 What is a Business Cycle?
Expansion Economic Growth Peak Contraction Recession Depression Stagflation Trough

3 Aggregate Demand and Supply
Aggregate Supply Macroeconomic Equilibrium

4 Why Do Business Cycles Occur?
Business Decisions Demand Slump New Technology Changes in Interest Rates Consumer Expectations External Issues

5 Predicting Business Cycles
Leading Indicators Orders for building permits Orders for durable goods Stock Prices Baltic Dry Index Coincident Indicators Lagging Indicators

6 Business Cycles in History
Great Depression Great Recession

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