1. Think about it What effects of the recession have you seen locally? What about the Metro area? Have you seen any signs that our recession is ending?

2. Standard SSEMA1e- Define and label stages of the business cycle.

3. Business Cycles in the United States We interpret economic growth with business cycles. There are two phases to the business cycle. Which phase is this?

4. How do we know it’s a business cycles GDP goes up two quarters in a row = expansion GDP goes down two quarters in a row = recession

5. Phases of the business cycles Expansion- a period of recovery from recession Recession- A period in which real GDP declines two quarters in a row

6. Business cycle Peak = Real GDP stops going up Trough= the turning point when Real GDP stops going down

7. Depression A depression occurs when a recession becomes severe. This is a state of the economy with large numbers of unemployed, acute shortages, and excess capacity in manufacturing plants.

8. Causes of the Business Cycle 1. Capital Expenditures 2. Inventory Adjustments 3. Innovation and Invention 4. Monetary Policy-Federal Reserve 5. External shocks

9. Out of the Box-Evaluation Pretend you are an economic advisor to the president. Explain to the president what business cycle we are in. Next look at the factors that cause the business cycle. Explain which of those factors may have contributed to our current condition, and why did you choose those. Lastly, what should the government do to fix the economy?

10. As I read… Underline any statement that might show slowing economic growth or what caused our recession. This article is yours to keep.

11. When you are complete… Choose: 1. Create a brochure explaining: The problems that a recession creates What is the government doing to encourage economic growth? The signs of a recession OR Create your own news article explaining the three things listed above under the brochure. This should be at least a page long.