Business Cycle

Business Cycle

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Multiple Choice

Which of the following is NOT a Phase?

• Expansion

• Contraction

• Neutral

• Peak

• Trough

Open Ended

Why does the unemployment rate play a large factor in deciding what phase the economy is in?

Multiple Choice

Optimistic people will

• help the economy

• hurt the economy

• not affect the economy

Assignment

If we stay in a contraction phase or trough phase for too long, it becomes a recession or even worse, a depression. 

We discussed the factors that affect the business cycle.

Explain how you a contraction phase can be switched into an expansion phase. Why would that work? Which factor does it involve?

What are some things that have worked in the past? 

Come up with at least 5 different ideas and answer the questions. Researching how the economy got out of different recessions or depressions will help.