Business Cycle The periodic and cyclical ups and

Business Cycle The periodic and cyclical ups and downs of the economy

Expansion Period -phase where the economy is growing -amount of goods produced? -number of jobs produced? -number of business starts

Peak Period -phase where the economy has reached its peak of growth -amount of goods produced? -number of jobs produced? -number of business starts

Contraction Period -phase where the economy is starting to decline from its peak activity -amount of goods produced? -number of jobs produced? -number of business starts

Trough Period -phase where the economy has reached its lowest point -amount of goods produced? -number of jobs produced? -number of business starts -recession is an extended trough period

Standard of Living -a measure of how well a person lives as wee as the amount of free time they have -Gross Domestic Product -the value of all goods and services produced in a nation in a given year -Why do we compare GDP with previous years?

Inflation Concerns -Inflation -a general increase in the cost of goods and services -Why is inflation a bad thing for the economy? -Consumer Price Index-- Survey of many goods and services that are compared to the same goods and services over time to measure the increase or decrease in prices -Controlling Inflation