Business Cycle Review

Economic activity is at its highest

• expansion

• contraction

• peak

• trough

Lowest period of production

• contraction

• expansion

• peak

• trough

Businesses produce more and hire more employees

• contraction

• expansion

• peak

• trough

consumer spending is rising on all items

• expansion

• contraction

• peak

• trough

Production is cut down

• expansion

• contraction

• peak

• trough

business profits are on the decline

• expansion

• contraction

• peak

• trough

inflation is increasing

• expansion

• contraction

• peak

• trough

the economy slows down

• expansion

• contraction

• peak

• trough

GDP is rising out of a recession

• expansion

• contraction

• peak

• trough

unemployment is at its highest

• expansion

• contraction

• peak

• trough