1. Friday November 7, 2014 Mr. Goblirsch – Economics
OBJECTIVE – Students Will Be Able To – SWBAT:
- Identify the stages of the business cycle.
AGENDA:
WARM-UP: Tax Day
CONCEPT: Business Cycle
ARTICLE: “How ‘GOP’ Congress could boost US economy”
Finish GDP Data Graph – Glue in your notebook
Collect Notebooks
*****Notebook Check TODAY*****
Tax Day WARM-UP: (Follow the directions below)
***5 minutes***
Take out your Weekly Time Sheet.
Calculate your tax deduction.
STEP 1: Gross Pay (Total of Weekly Pay) X Tax % = Amount of Taxes
STEP 2: Gross Pay (Total of Weekly Pay) – Amount of Taxes = Net Pay (Weekly Deposit)
Make your weekly deposit in your Account. (Have it stamped)

2. Business Cycle
Chapter 12 Section 3

3. Phases of the Business Cycle
Expansion = economic growth
Peak - the high point of expansion
Contraction = economic growth slows/declines
*unemployment usually rises
Trough - the lowest point of contraction
Recession, Depression, Stagnation
A) recession—prolonged economic contraction
B) depression—deep, long lasting recession
C) stagflation—a decline in real GDP combined with a rise in inflation

4. What Keeps a Business Cycle Going?
1) Business investment
invest in expansion, or…
slow down to meet falling demand
2) Interest rates and credit
can encourage or discourage borrowing & investment
3) Consumer expectations
how will the economy be in the future?
4) External shocks
oil production and prices
natural disasters

5. Leading economic indicators
- stock market
- interest rates
- housing starts (building permits)
- changes in inventories
- new orders for consumer goods

6. CURRENT EVENTS ARTICLE
Read the Article with your group:
Discuss the option outlined in your article
Poll your group on whether you feel it is a good option or not.
Divide your group into supporters and opposition.
Each side will write a brief statement on why they are for or against the option.