SLIDE 1
The Business Cycle
1.
The Great Depression The Business Cycle Business Cycle: model - - PowerPoint PPT Presentation
The Great Depression The Business Cycle Business Cycle: model - - PowerPoint PPT Presentation
The Great Depression The Business Cycle Business Cycle: model representing the nations 1. economic activity and strength The Business Cycle 2. Phases within a Business Cycle: Recession (Rc): a slow - down in the economy for two consecutive a.
SLIDE 2
SLIDE 3
SLIDE 4
The Business Cycle
- 2. Phases within a Business Cycle:
a.
Recession (Rc): a slow-down in the economy for two consecutive quarters or 6 months in a row. People become nervous & cautious.
b.
Depression (D): a severe & prolonged slow-down or “break-down” in the economy. People react with fear & panic.
SLIDE 5
The Business Cycle
c.
Recovery (Ry): active economic growth for two consecutive quarters or 6
months following a recession or depression. People become optimistic.
d.
Prosperity (P): an extended period of economic growth. People develop trust & confidence in the economy.
SLIDE 6
The Business Cycle
3.
Capitalism is a market economy driven by the laws of supply and demand.
a.
Advertising and human needs/wants create the demand.
b.
Manufacturers/producers create the supply hoping to achieve high profits.
c.
If demand is high, prices & profits go up. (New technology: iPads)
d.
If demand is low, prices/profits go down (Outdated technology: PS2)
SLIDE 7
Business Cycle: World War I to World War II
SLIDE 8
Business Cycle: World War I to World War II
P Rc D Ry P Rc Ry Ry Worst D New
Credit
Great