1. #53- Describe the phases of the business cycle #54- Explain the concept of gross domestic product #55- Explain productivity and its effects on individual businesses and the economy as a whole

2. Recurring changes in economic activity  History shows that sometimes an economy grows (expansion) and sometimes is slows down )contraction)  Economies have followed the patterns  Sometimes called “Economic Cycle”  Four patterns: Expansion, Recession, Trough-Depression, Recovery

3. Recovery Expansion Recession Trough

4.  Economy is flourishing  Sometimes referred to as “prosperity”  Nationwide low unemployment  Increase in output of goods and services  High consumer spending  Good time for new businesses to start up/expand  Expansions continues until it reaches a “Peak”  “Peak” ends expansion and begins “recession”

5.  Period of economic slow down  Lasts for at least two quarters (or 6 months)  Businesses reduce work force  Consumers have less money to spend  Producers make fewer goods and services  Research and development is cut back/ business expansion put on hold  Can end quickly or last a long time  End is signified by “trough”- lowest point in the recession

6.  Lowest point in business cycle  Marks transition from recession to recovery period  Economy stops slowing and shows signs that recovery is near

7.  Prolonged recession  Nearly impossible to find a job  Businesses shut down  Spending is very low  Unemployment very high  Poverty results from high unemployment  Great Depression of 1930’s is example

8.  Period of renewed economic growth  Follows recession or depression  GDP begins to increase  Business picks up  People are finding jobs  Increased consumer spending  Moderate expansion by businesses

9.  Work with a partner to complete this class activity.  Create a chart that compares and contrasts the 4 phases of the business cycle.  Then, identify the phase that you think the United States currently is experiencing and justify your answer.  E-mail to mbelote@lcps.org for 50 point assignmentmbelote@lcps.org

10.  Standard of Living- The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area  Inflation - Sustained increase in the general price level of goods and services in an economy over a period of time  Unemployment Rate- The percentage of the total labor force that is unemployed but actively seeking employment and willing to work  GDP - output of goods and services produced by labor and property within a country over a specified period of time

11.  Gross Domestic Product  Output of goods and services produced by labor and property located within a country  Indicator of economic health of a country  Serves as measure of county’s productivity  Used as gauge of country’s standard of living

12.  Output per worker hour- measured over a defined period of time

13.  Business investment in new equipment or facilities  Additional training  Financial Incentives  Reduce work force and increase responsibilities of other workers who remain  Higher productivity improves company profits

14.  Business Cycle  Expansion  Recession  Trough  Depression  Recovery  Economic Indicator  GDP  Standard of Living  Productivity  Ways to Increase Productivity

15.  Students will work independently or with a partner to complete this assignment  Select a company and research how that business has increased productivity over recent years.  Prepare a breif PPT presentation to deliver to the class that outlines the following:  100 Points Company Overview Strategies Used to Increase Productivity Investment Required by the Company Results and Impact on the Company Summary/Conclusion