1 / 12

The Business Cycle

The Business Cycle. …the economic roller coaster!. The Business Cycle. Economies naturally go through ups & downs. The business cycle is the rise and fall of economic activity over time. In the United States…

patch
Télécharger la présentation

The Business Cycle

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Business Cycle …the economic roller coaster!

  2. The Business Cycle • Economies naturally go through ups & downs. • The business cycle is the rise and fall of economic activity over time. • In the United States… • 1930s, 50s, 70s, 2000s characterized by a drop in economic activity & rise in unemployment • Slumps followed by new waves of increased productivity and increased GDP

  3. Stages of the Cycle

  4. Prosperity • Also known as the “peak” • Higher wages, more jobs available, higher demand for goods/services • Unemployment is low, GDP is high • People are spending!

  5. Recession • Economic activity slows down – less production of goods, downturns in industry • GDP decreasing, unemployment increasing • People are starting to save!

  6. Depression • Also known as a “trough” • Deep recession that lasts for years and affects the entire economy • Unemployment is high, GDP is low • Government starts trying to “stimulate” the economy • People are saving!

  7. Recovery • Also known as “expansion” • Rise in business activity after a recession or depression • Innovation occurs – businesses start bringing out new products & services • Unemployment decreasing, GDP increasing

  8. Entrepreneurs Who Rose from the Ashes Many of today’s Fortune 500 companies came from recessions or depressions…

  9. General Motors • The Panic of 1907 • William C. Durant • High school drop-out working as a manager of Buick in Detroit • Acquired Oldsmobile, Cadillac, Pontiac • Launched Chevrolet (later joined GM in 1917)

  10. Playboy Enterprises • Recession of 1953 • Hugh Hefner • Former employee of Esquire who quit when his boss refused to give him a $5 raise • Designed his own magazine with the help of his friends

  11. Sirius Satellite Radio • Early 1990s Recession • Robert Briskman • Former NASA engineer • COO at Geostart(satellite messaging company) • Figured out how to broadcast digital radio signals via satellite • Merged with XM Satellite Radio in 2008 to provide commercial-free radio 24 hrs/day

  12. REVIEW What are the four stages of the business cycle? How is each stage characterized by economic indicators (GDP, Unemployment)?

More Related