Impact of the Business Cycle Unit 1 Topic 1.5 Yr10

Lesson Objectives 1.At the end of today's lesson you will be able to understand what the Business Cycle is 2. Demonstrate the impact the Business Cycle has on businesses Outcomes Identify what the Business Cycle is Understand how it is measured Demonstrate the various stages and the impact each stage has on a business

What does this mean to you?

The Business Cycle ‘Fluctuations in the level of economic activity over a period of time’

The Business Cycle Recession Boom Slump Recovery Time GDP

The Impact on Businesses High Prices High Wages High Consumer Spending High Prices High Wages High Consumer Spending Time

The Impact on Businesses High Prices High Wages High Consumer Spending High Prices High Wages High Consumer Spending Time Businesses look for other markets Investments Fall Low Profits Redundancies Businesses look for other markets Investments Fall Low Profits Redundancies

The Impact on Businesses High Prices High Wages High Consumer Spending High Prices High Wages High Consumer Spending Time Businesses look for other markets Investments Fall Low Profits Redundancies Businesses look for other markets Investments Fall Low Profits Redundancies More redundancies Consistent high unemployment Low Consumer Spending Shops/Factories Close More redundancies Consistent high unemployment Low Consumer Spending Shops/Factories Close

The Impact on Businesses High Prices High Wages High Consumer Spending High Prices High Wages High Consumer Spending Time Businesses look for other markets Investments Fall Low Profits Redundancies Businesses look for other markets Investments Fall Low Profits Redundancies More redundancies Consistent high unemployment Low Consumer Spending Shops/Factories Close More redundancies Consistent high unemployment Low Consumer Spending Shops/Factories Close Increased production Wages rise Unemployment declines Consumers start to spend more Increased production Wages rise Unemployment declines Consumers start to spend more

Lesson Objectives 1.At the end of today's lesson you will be able to understand what the Business Cycle is 2. The effect the Business Cycle has on businesses Outcomes Identify what the Business Cycle is Understand how it is measured Demonstrate the various stages and the effect each stage has on the business cycle

Group Slump What is a slump? slump Identify three effects that are likely to occur to a small business in the event of a slump

Group Boom What is a boom? Boom Identify three effects that are likely to occur to a small business in the event of a Boom

Group Recession What is a recession? recession Identify three effects that are likely to occur to a small business in the event of a recession

Group Recovery What is a recovery? recovery Identify three effects that are likely to occur to a small business in the event of a recovery

Group Definition In your own words and in your own way, define and explain the terms: Economic Growth Economic Growth Economic Activity Economic Activity The Business Cycle The Business Cycle The Economy The Economy Luxury goods Luxury goods Necessities Necessities

Q.17 May 2011 Paper Identify three likely effects on a business of a downturn in the business cycle a)Higher sales due to rising consumer incomes b)Lower fixed costs due to lower interest rates c)Less risk of the business becoming insolvent d)More difficult to recruit employees e)Lower demand due to business closures f)Lower prices on goods bought from suppliers

Q.17 May 2011 Paper Identify three likely effects on a business of a downturn in the business cycle a)Higher sales due to rising consumer incomes b)Lower fixed costs due to lower interest rates c)Less risk of the business becoming insolvent d)More difficult to recruit employees e)Lower demand due to business closures f)Lower prices on goods bought from suppliers

Plenary Lesson 34 Plenary section fill in the ‘Missing Words’ and ‘Test Yourself’