Business Cycle

Stage 1 of business cycle

• Prosperity

• Recession

• Depression

• Recovery

The peak of the economic activity

• Prosperity

• Recession

• Depression

• Recovery

Economic Activity Slows Down

• Prosperity

• Recession

• Depression

• Recovery

A deep recession that affects the entire economy and last for several years.

• Prosperity

• Recession

• Depression

• Recovery

A rise in business activity after a recession or depression

• Prosperity

• Recession

• Depression

• Recovery

Unemployment is low

• Properity

• Recession

• Depression

• Recovery

Wages are higher, workers have more income

• Prosperity

• Recession

• Depression

• Recovery

General Drop in total production of goods and services make GDP decline

• Prosperity

• Recession

• Depression

• Recovery

Many people are out of work, Unused manufacturing facilities, Fewer goods/services produced

• Properity

• Recession

• Depression

• Recovery

Production increases, GDP grows, New businesses open, existing businesses innovate, people start to go back to work

• Properity

• Recession

• Depression

• Recovery