6.1.1 - BUSINESS CYCLE Flashcards
1
Q
4 stages of the business cycle
A
- growth
- boom
- recession
- slump
2
Q
What happens in growth
A
- GDP rising
- unemployment falling
- higher living standards
- Profits rising
3
Q
What happens in boom
A
- rapid inflation causes costs to rise
- due to too much spending
- Very little unemployment
4
Q
What happens in recession
A
- Falling demand
- GDP drops
- Loss of jobs
5
Q
What happens in slump
A
- very high unemployment
- Many businesses fail to survive
- low profits
