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Chapter 12.2 Business Cycles

Four Phases of the Business Cycle Expansion /Recovery Peak - Contraction /Recession Trough - What is the long term trend in GDP?. BUSINESS CYCLE GRAPH. Chapter 12.2 Business Cycles. REAL GDP. LONG TERM TREND. TIME. Four Phases of the Business Cycle Expansion /Recovery Peak

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Chapter 12.2 Business Cycles

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  1. Four Phases of the Business Cycle Expansion /Recovery Peak - Contraction /Recession Trough - What is the long term trend in GDP? BUSINESS CYCLE GRAPH Chapter 12.2 Business Cycles REAL GDP LONG TERM TREND TIME

  2. Four Phases of the Business Cycle Expansion /Recovery Peak Contraction /Recession Trough - What is the long term trend in GDP? BUSINESS CYCLE GRAPH Chapter 12.2 Business Cycles -a period of increased output and employment. Full employment may be reached and price levels may be increasing. Expansion Expansion REAL GDP Expansion LONG TERM TREND TIME

  3. Four Phases of the Business Cycle Expansion /Recovery Peak Contraction /Recession Trough What is the long term trend in GDP? BUSINESS CYCLE GRAPH Chapter 12.2 Business Cycles - a period of increased output and employment. Full employment may be reached and price levels may be increasing. Expansion Peak - a temporary maximum level of output, usually characterized by high inflation and low unemployment Expansion REAL GDP Peak Expansion LONG TERM TREND TIME

  4. Four Phases of the Business Cycle Expansion /Recovery Peak Contraction /Recession Trough What is the long term trend in GDP? BUSINESS CYCLE GRAPH Chapter 12.2 Business Cycles -a period of increased output and employment. Full employment may be reached and price levels may be increasing. Expansion Peak Contraction - a temporary maximum level of output, usually characterized by high inflation and low unemployment Expansion REAL GDP Peak Contraction - a period of decline in total output, income, employment, and trade lasting 6 months or longer. Expansion LONG TERM TREND TIME

  5. Four Phases of the Business Cycle Expansion /Recovery Peak Contraction /Recession Trough What is the long term trend in GDP? BUSINESS CYCLE GRAPH Chapter 12.2 Business Cycles - A period of increased output and employment. Full employment may be reached and price levels may be increasing. Expansion Peak Contraction - A temporary maximum level of output, usually characterized by high inflation and low unemployment. Trough Expansion REAL GDP Peak Contraction - A period of decline in total output, income, employment, and trade lasting 6 months or longer. Trough Expansion LONG TERM TREND - The lowest level of output and employment within a cycle. Inflation is typically very low. TIME

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