1. Introduction to Business & Marketing
The Business Cycle
Introduction to Business & Marketing
Distribute: note guide!!

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…
Economic “slumps” in 1930s, 50s, 70s, 2000s
Fall in economic activity & rise in unemployment
Slumps followed by new waves of increased productivity and increased GDP

3. Stages of the Cycle
Prosperity
Recession
Depression
Recovery

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 start to save!

6. Depression
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 – business start bringing out new products & services
Unemployment decreasing, GDP increasing
People start to spend!

8. “Entrepreneurship in the Midst of Recession”
Recession Article
“Entrepreneurship in the Midst of Recession”
Read the article and complete the entrepreneur chart, then answer the discussion questions in full sentences.