1. Beginning Activities Title today’s lesson: Business Cycles and Fluctuations Notes Activity: Copy the Graph on Page 376; define the terms listed on the graph Mission Statement: To prepare you for a life of responsible citizenship Daily Expectations: – Use bathroom before class – Come in quietly and get to work immediately – Pay attention and be respectful – No phones – No food or drinks other than water – Do your work – Give AP quality effort 5 bonus points for supplies

2. Extra Credit 5 points each 6 weeks for bringing supplies: – Paper clips – Pens – Paper – Staples – Tape

3. Business Cycles and Fluctuations Chapter 14 Economic Stability

4. Causes of the Business Cycle Business decrease investment. Businesses cut back during hard times and increase during good times. Innovation – New products can create a new demand. – More efficient ways of producing goods – Investment follows, creating more economic activity. The Federal Reserve can increase or decrease the money supply. External shocks – Connect to the Present: Crimea and Oil Prices in Europe Connect to the Present: Crimea and Oil Prices in Europe

5. Predicting Business Cycles Econometric model – macroeconomic model that uses algebraic equations to describe how the economy behaves Index of leading indicators – a monthly statistical series that usually turns down before real GDP turns down, and turns up before real GDP turns up.

6. Ending Activity Writing Activity: Innovation – What innovation in American history do you think has had the biggest impact on the American economy? – 1 page at least Make sure the floor is clean Connect to our objectives: How does this prepare you for life and the future?