Unit 2 - Macroeconomics
Lesson #1 – Measuring the Economy The Business Cycle
Performan ce Standard SSEMA1 - The student will illustrate the means by which economic activity is measured . b. Define the stages of the business cycle; include peak, contraction, trough, recovery, expansion as well as recession and depression.
Learnin g Targets The student will understand that… Each phase of the business cycle (expansion, peak, contraction, and trough) is characterized by changes in GDP, unemployment and inflation rates.
Key Vocabulary Contractio n Trough Expansion Recession Recovery Depression
The Business Cycle The business cycle is a graph illustrating the relationship between real GDP and time . The y-axis is real GDP. The x-axis is time. The four main parts of the business cycle includes the recovery/expansion, the peak, contraction/recession, and trough.
The Business Cycle
The Four Phases of the Business Cycle The Busine ss Cycle Peak Contractio n / Recession Contractio Recession Trough Recovery / Expansion Recovery / Expansion