Phases of the Business Cycle

Question 1

business cycle

Answer 1

a measure of GDP over time. it has periods of boom, recession, and recovery

Question 2

boom (peak)

Answer 2

follows a recovery – business measured by GDP is at an all time high

Question 3

recession

Answer 3

follows a boom – business measured by GDP is in a downward trend (dropping)

Question 4

trough

Answer 4

lowest point in a recession, marks the beginning of a recovery

Question 5

recovery

Answer 5

follows a recession – business measured by GDP is in an upward trend (improving)

Question 6

when the economy is beginning to pull out of its lowest point, and businesses begin to add jobs

Answer 6

recovery