Chapter 14.1

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Chapter 14.1 fill in Notes

• Business Cycles

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• Business Cycle- the economy going up and down, as
  measured by GDP (4 phases)
• A. Peak when Real GDP is running at
  its full potential
• B. Recession- begins when GDP starts
  going down
• 1. signals bad economy and tough
  times ahead
• C. Trough when recession ends and GDP is
• at a bottom
• D. Expansion- when GDP increases after
  it
• hits a trough
• 1. signals good times ahead

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• E. Depression when real GDP goes down
• severely for an extended time. Not Common
• II. 3 causes of the Great Depression
• A. The disparity in.
• B. easy and
• C. When the U.S. stopped loaning to other
• countries, some foreign nations..

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• III. Why does GDP go up and down?
• A. changes in.
• (business spending)
• B.
• C.
• D.
• E.
• IV. The 4 spenders that move GDP (p.348) ..
• 1. C
• 2. I
• 3. G
• 4. F

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• http//www.tradingeconomics.com/Economics/GDP-Grow
  th.aspx?SymbolUSD gdp graph