1. Using the Business Cycle graphic organizer, research your assigned country with 1)handout 2)heritage.org info online *You will be able to use your Business Cycle G. O. during the exam Friday so take good notes!

2. TIME/INCREMENTS

3.  Expansion:($ are flowing) period of economic growth plentiful jobs and falling unemployment businesses invest in NEW plants, equipment, salaries ect….. Inflation (higher prices) can occur.  Peak: real GDP stops rising high production, high employment and stable prices. height of expansion

4.  Contraction:( going down hill) Deflation (lower prices) can occur falling output low levels of investment Two types:  Recession: real GDP falls for 2 consecutive quarters, lasts 6-18 months and  Depression: high unemployment and low factory output  Trough: lowest point of economic activity economy has “bottom-out”

5.  1. Business Cycle  Where is the country in the Business Cycle?  Look for these hints: > Based on your reading it will say First growth in years : the point would be right above the trough. Unemployment all time high- Contraction Small growth- Expansion, Continual growth- higher on Expansion

6.  Any point above the PPF (H) = currently unattainable, however it is a FURTURE goal We always want our economy to be growing To reach point H, increase the following:  technology  debt  investment G

7.  Any point above the PPF (H) = currently unattainable, however it is a FURTURE goal We always want our economy to be growing To reach point H, increase the following:  technology  debt  investment G PPF curve Future – never realized Economies are all somewhere in here:

8.  Production Possibility Frontier Countries (and businesses) …  have limited resources  must create trade-offs, (trade-offs are shown through the PPF)  that are working efficiently are ON the PPF curve.  always want to expand their PPF possibilities. To exand the PPF curve, countries/businesses can:  Increase FoP (CELL)  Increase Debt  Increase Investment

9. Country #1 -Poor >  Your graph will have D & C (Country sees little economic growth)  Label as D & C,  and write about how the country is not using its resources efficiently with examples  Country #2 - Rich >  Your graph will have A, B & C  = Label A, B,C and write about how the country’s GDP is positive-  Write about how the country being efficient with specific examples and has plans to move to C (future goal)

11. GROUP XGROUP Y  HAITI  JAMAICA  IRAN  NORTH KOREA  PORTUGAL  INDIA  GREECE  SPAIN  CONGO  Switzerland  Singapore  Germany  Hong Kong  Japan  NEW ZEALAND  Canada  Chile

12.  DAY 1  You will research + read one article about your assigned country.  Fill in the name of the country as Country #1 on the handout.  1.BUSINESS CYCLE – look up indicators in the reading and online (heritage.org) such as Rule of Law, inflation, Gov’t limits, regulations, markets, etc…  Where is the country? Based on your reading it will say First growth in years : the point would be right above the trough. Unemployment all time high- Contraction Small growth- Expansion, Continual growth- higher on Expansion  2. PPF CURVE – Explain WHY you plotted the PPF curve. Use a BECAUSE statement.  Country sees little growth- Label it D, not using its resources efficiently  Country’s GDP is positive- Label A and B it is being efficient and has plans to move to C (future goal)  3. POLICIES/CULTURE/INFRASTRUCTURE – Explain WHY the policies of the country keep them at that point on the PPF curve.  DAY 2  When you are done with that country you will pick another country from the OTHER column.  Complete the second set of questions and compare the countries.

14.  Any point above the PPF (H) = currently unattainable, however it is a FURTURE goal We always want our economy to be growing To reach point H, increase the following:  technology  debt  investment G H Future – never realized Economies are all somewhere in here:

15.  Write this on the back of your handout -  A. US #1 Goal: Economic Freedom What does that mean?  B. Other Economic goals?  C. Economic freedom looks like….