Diagram Cycles to Know

Question 1

Effects of Losing Jobs

Answer 1

Workers lose jobs –> fewer people have $$$ to buy —> companies sell less —> close factories

Question 2

Economic Cycle

Answer 2

Recession > Recovery > Prosperity
|
|
v
Depression

Question 3

Economic Upswing

Answer 3

1. Higher demand for goods and services
2. Higher production
3. higher employment levels
4. More money available to spend on goods and services

As long as demand for goods and services increases, the economy expands