Business Cycle
Define trough.
What is the end of a period of declining business activity and the transition to expansion.
In prosperity, does GDP growth increase or decrease?
Increase
When economic recession lasts for longer than one year, it is called.......
depression
Is recovery slow, or fast?
either or
What happens to the unemployment rate during a trough?
it bottoms out/ increases
T or F, during prosperity, the demands for goods and services are high?
True
Peak of the business cycle
Prosperity
What is ripple effect?
when a recession in one industry leads to a recession in other industries.
When unemployment is at its highest rate.
What is the trough?
Does activity slow down or fasten up during prosperity?
Slow down
One feature for recession
general drop in productivity.
The GDP declines.
Economic activity slows down
Definition of inflation.
What is the rate at which the general level of prices for goods and services is rising and the purchasing power of currency is falling?
rise and fall of economic activity
business cycle.
When real GDP STOPS increasing?
At its PEAK
During which phase does the ripple effect take place?
Recession
Does total output decline or increase during recession?
Decline
October 29, 1929. Represents?
Black Tuesday or Great Depression
T or F, unemployment increases during recovery
False, decreases
What is the top example of a recession
What is The Great Depression
When the Great Depression began.
Between 1929 & 1933
The four sections of the business cycle?
•Prosperity
•Recession
•Depression
Recovery