The Business Cycle

The ___________________ represents the constant changes and ups and downs of economic growth in an economy.

• Trough

• Peak

• The Economic Cycle

• The Business Cycle

___________________is a period of prolonged and deep recession. Consumer spending is very low, unemployment is very high, and production of goods and services is down significantly. Poverty results because many people are out of work and cannot afford to buy food, clothing, or shelter.

• Recovery

• Expansion

• Recession

• Depression

_________________is a period of renewed economic growth following a recession or depression characterized by reduced unemployment, increased consumer spending, and moderate expansion by businesses.

• Recovery

• Expansion

• Recession

• Depression

The low point of a recession just before recovery begins,

• Recession

• Recovery

• Trough

• Peak

The high point of an economic recovery.

• Recession

• Recovery

• Trough

• Peak

In a recession, GDP is steadily decreasing, and the unemployment rate is

• Staying the same

• Steadily increasing

• Steadily decreasing

• Double what it was last year

In times of prosperity, GDP is __________________ and unemployment is low.

• High

• Low

• Staying the same

• Double what it was last year