Economic Trends

Label the parts of the business cycle.

a

b

c

d

e

Trough

Peak

Recession

a decline in the economy

Expansion

1. If the number of jobs available decreases,   what may happen to the poverty rate?

1. If your salary remains the same, and there is a dramatic increase in inflation,

2. how is your buying power affected?

1. If the GDP declines, what changes will you see in consumer behavior?

1. What happens to unemployment during a recession? 

Match the following

• trough

• term given to the periodic ups and downs in a nation's economic activity

• economic indicators

• when economic activity is at the lowest point in the business cycle

• base year

• measurements of any specific aspects of the economy

• business cycle

• used as a point of comparison for other time periods in a series of statistics

• Producer Price Index

• measures the prices that producers charge their major customers, usually meaning wholesalers or large retailers