1. What is a business cycle? It is a recurring cycle of economic growth, decline, recession, and recovery in a country. It is the process leading to an economic boom, and to an economic bust. Economic growth is unpredictable, however it follows a certain pattern: 1) an increase in average economic growth 2) a peak 3) a reduction in average economic growth 4) a trough (low point)

2. Indicators of the Business Cycle A common indicator to many economists is the GDP. If in 2 consecutive quarters of the year there is no growth in GDP, is indication of recession. However some believe better indications are: 1) Employment 2) Personal income 3) Industrial production

3. Where are we in the Business Cycle? Symptoms of a recession: Loss of jobs Many bankruptcies Because of job loss, many will not spend money Demand for products is low