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

Economic Growth and Business Cycle.notebook 1 January 15, 2015

Jan 15­5:34 AM

Warm Up: Socrative quiz Code: foyecon

Jan 6­3:47 PM

Today's Topic: The Business Cycle

Focus on the word "cycle". What does this imply?

Jan 11­1:22 PM

Business Cycle a period of macroecnomic contraction followed by an expansion; represents changes in real output Real output - how many goods and services we are actually producing

Jan 14­8:51 AM

Expansion Peak Contraction Trough Recession Depression Recovery These are the components of the business cycle. Classify as having a positive or negative connotation. Positive Negative

Jan 14­4:48 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

• r 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 11­1:22 PM

Economic Growth and Business Cycle.notebook 2 January 15, 2015

Dec 5­4:25 PM

Inflation

Jan 14­8:49 AM Jan 14­4:45 AM

More on the Business Cycle:

• 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 11­1:23 PM

Business Cycle Events Practice

Jan 14­8:49 AM

Closing: Socrative Exit Ticket Teacher Question: Why might people be happy to see that the economy has reached a trough?

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