Sociology Piece.docx - At a raw basic level the Economic...

At a raw basic level the Economic Cycle as defined by Investopedia.com is “ the
natural fluctuation of the economy between periods of expansion (growth) and contraction
(recession)”. It is imperative that we understand what the Economic Recession is, how it affects
us as a nation at large and more specifically as C.O.B. students .
Firstly one must have a more in depth understanding of what an Economic Cycle is
to truly understand how it affects them. The cycle consists of the following steps which are
the peak, recession, trough and recovery . During the peak or high point of the cycle there is a
general growth or raise in the country’s output of products or services, export of goods, income
per capita and employment. During the recession an economy will slow down and there will be a
decrease in the output of products or services, export of goods, income per capita and there will
be a rise in the unemployment rate. The trough is the low point of the economy, it is where
outputs of commodities are at their lowest, exports are at their lowest, the unemployment rate is
at its highest and thus income per capita will be at its lowest more people get laid off from their
jobs and join the unemployed. After the trough or the low point there is only one way for the
economy to go and that is up. This climbing phase is known as the recovery of the economic