Business Cycle & Circular Flow Diagram

Circular Flow of Economic Activity Product Market GOVERNMENT Factor Market

Label the Blank Arrows on Your Page… Product Market Government Factor Market

Circular Flow of Economic Activity Product Market Consumer Spending Business Revenue Goods & Services Goods & Services Government Buy Productive Resource Land, Labor, Capital, Entrepreneurship Payment for Resources Income for Resources Factor Market

Circular Flow of Economic Activity $ $ $ $ $ $ $ Product Market $ Consumer Spending Business Revenue Goods & Services Goods & Services Government $ $ $ $ $ Buy Productive Resource $ $ Land, Labor, Capital, Entrepreneurship $ Payment for Resources Income for Resources Factor Market

Circular Flow of Economic Activity $ $ $ $ $ $ $ Product Market $ Consumer Spending Business Revenue Goods & Services Goods & Services Government $ $ $ $ $ Buy Productive Resource $ $ Land, Labor, Capital, Entrepreneurship $ Payment for Resources Income for Resources Factor Market

Now add a few more terms… Product Market Government Factor Market

Circular Flow of Economic Activity Product Market Consumer Spending Business Revenue Goods & Services Goods & Services Sales Tax Government Services Corporate Tax Transfer Payments Individual Tax Payment for Resources Buy Productive Resource Buy Resources Land, Labor, Capital, Entrepreneurship Payment for Resources Income for Resources Factor Market

The Business Cycle Real GDP

Circular Flow of Economic Activity Product Market 7 10 9 Goods & Services 5 6 2 1 Transfer Payments 3 4 Buy Productive Resource Buy Resources Land, Labor, Capital, Entrepreneurship Payment for Resources Income for Resources 8

Exit Ticket Match the Following Terms on the Circular Flow Diagram… ___ Factor Market ___ Government ___ Sales Tax ___ Corporate Tax ___ Consumer Spending ___ Individual Tax ___ Public Services ___ Goods/Services ___ Business Revenue ___ Payment for Resources

Economic Goal: Full Employment Homework – Chapter 14.2 Economic Goal: Full Employment Identify how it is measured Identify the types of unemployment  In class we will learn, how the government can “treat” different types of unemployment.

Circular Flow of Economic Activity Product Market Government Factor Market

The Business Cycle