business cycle Flashcards
1
Q
what are the 4 basic stages to the business cycle?
A
recovery (expansion), prosperity (boom), recession, and depression (trough)
2
Q
what is recovery?
A
sales –> rising, wages –> rising, prices –> rising, production –> increasing, business profits –>increasing, business failures –> decreasing
3
Q
what is prosperity?
A
sales –> high, wages –> high, prices –> high, production –> high, business profits –> high, business failure –> low
4
Q
what is recession?
A
sales –> declining, wages –> failing, prices –> failing, production –> declining, business profits –> decreasing, business failures –> increasing
5
Q
what is depression?
A
sales –> low, wages –> low, prices –> low, production –> low, business profits –> low, business failures –> high
