1. Business Cycle & Circular Flow Diagram

2. Circular Flow of Economic Activity
Product Market
GOVERNMENT
Factor Market

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

4. 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

5. 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

6. 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

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

8. 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

9. The Business Cycle
Real GDP

10. 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

11. 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

12. 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.

13. Circular Flow of Economic Activity
Product Market
Government
Factor
Market

14. The Business Cycle