1. THE BUSINESS CYCLE

2. Business Cycles
The business cycle is a graph illustrating the relationship between real GDP and time.
The changes are measured by increases or decreases in the real GDP.

3. Business Cycles
Fluctuations are impossible to avoid and they can last from months to several years.
The Business Cycle is divided into 4 stages:

4. Business Cycles Peak--------------- Recovery or Expansion-----------
High point of Growth
Period of Growth- When the recovery exceeds the previous peak, expansion begins

5. Business Cycles 3. Contraction or -----Recession
4. Trough
Period of Slowdown- When contraction lasts for two quarters (6 months) it is known as a recession.
Lowest level of production

7. Business Cycles
The Factors that influence supply and demand are what cause fluctuations in the business cycle.
Business Investment:
a) Purchasing new Capital goods b) promote efficiency c) increase technology

8. Business Cycles
2. Money and Credit: Individuals and businesses tend to borrow more money to make purchases when interest rates are low. 3. Public Expectations: The outlook on the market by consumers can lead to a recession or expansion

9. Business Cycles
4. External Factors: Changes in the world’s political and economic climate. (War, oil prices)

10. CELEBRITY BUSINESS CYCLE