Business Cycle

Question 1

Expansion

Answer 1

Increase consumer spending
Increase business investment
Sales and profit rise
Unemployment falls

Question 2

Contraction

Answer 2

Decreases consumer spending
Decrease business investment
Sales and profit fall
Unemployment rise

Question 3

Peak

Answer 3

Wages salary high
Business operate at full capacity
Sales n profit high
Low levels of unemployment

Question 4

Trough

Answer 4

Wages and salaries low
Sales profit low
High level unemployment