Economic Growth and Business Cycle.notebook January 15, 2015 Warm - PDF document

Economic Growth and Business Cycle.notebook January 15, 2015 Warm Up: Today's Topic: The Business Cycle Socrative quiz Code: foyecon Focus on the word "cycle". What does this imply? Jan 15­5:34 AM Jan 6­3:47 PM Business Cycle These are the components of the business cycle. Classify as having a positive or negative connotation. a period of macroecnomic contraction Expansion Positive Negative Depression followed by an expansion; represents Recovery changes in real output Contraction Trough Recession Peak Real output - how many goods and services we are actually producing Jan 11­1:22 PM Jan 14­8:51 AM Expansion - a period of rising Real GDP; unemployment falls Peak - the point where Real GDP stops rising Contraction - a period of falling Real GDP; unemployment rises Recession - a period of contraction that lasts 6 months or more Depression - a long and severe period of contraction Trough - the point where Real GDP stops falling Recovery- an expansion / rising Real GDP after a contraction Jan 14­4:48 AM Jan 11­1:22 PM 1

Economic Growth and Business Cycle.notebook January 15, 2015 Inflation Dec 5­4:25 PM Jan 14­8:49 AM More on the Business Cycle: Business Cycle Events Practice - Measured from peak to peak -Timing is determined by the National Bureau of Economic Research - Since the Great Depression we have had 11 recessions lasting an average of 10 months - The average expansion has lasted 57 months Jan 14­4:45 AM Jan 11­1:23 PM Closing: Socrative Exit Ticket Teacher Question: Why might people be happy to see that the economy has reached a trough? Jan 14­8:49 AM 2

Attachments Business Cycle.pdf Whats in GDP Handout.pdf Business Cycle Events.docx Nominal and Real GDP WARM up.docx