The Business Cycle. Ms. Sanyigo’s Roller Coaster Ride The Business Cycle:
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Transcript of The Business Cycle. Ms. Sanyigo’s Roller Coaster Ride The Business Cycle:
The Business Cycle
The Business CycleMs. Sanyigos Roller Coaster RideThe Business Cycle:The PartsExpansionPeakBusiness is expandingNew inventions/productsGDP increasingNew jobs createdNew businesses opening
The highest pointBusiness as grow as much as it can
Parts:ContractionTroughNo new jobs being createdNo new businesses opening or new productsGDP may be decreasingLowest point
What happens next????We go back up!
ExtremesRecessionDepressionGDP has not grown for 6 monthsLoss of jobsLay offsSome businesses closeIn a recession for more than a yearMore lay offsNo new jobsHigh unemploymentMany businesses close
The Circle CycleConsumersBusinessesGovernmentRolesConsumerBusinessesWe buy things from businesses
We give businesses our laborThey provide goods and services
They employ us and give us wages-pay, benefits, trainingRolesGovernmentConsumersBusinessesTaxesTaxesPublic GoodsPublic Goods
