Jan. 21, 2016
Business cycles
·
Peak- highest point of real GDP.
1.
Greatest amount of spending and the lowest
amount of unemployment.
2.
In this phase inflation becomes a problem
·
Expansion- recovery phase
1.
Real GDP is increasing, due to an increase of
spending and a decrease of unemployment.
·
Contraction/ recession- real declines for 6
months due to a reduction of spending and increasing unemployment.
·
Trough- lowest point of real GDP.
1.
Least amount of spending and the highest
unemployment
This was very useful information. GDP is so important! Nice job updating your blog for every few days of notes (:
ReplyDeleteWhat a wonderful blog you have here Chris, anyway I was hoping to add a little information to your post. Did you know that 1 cycle is measured from trough to trough? And that an average cycle could last for 5-7 years. Another fun fact; we could possibly be in one right this moment but will never know until its over. Isn't that cool. Once again Chris nice blog!
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