4 Phases of a Business Cycle

Phase 2 Boom; economic activity at peek

1. Businesses working and selling at full capacity

Phase 4 Recession

1. Production at its lowest point 2. High unemployment 3. Reduce spending on goods and services

Phase 3 Economy starts to slow down

1. people are buying less goods and services 2.businesses are cutting back production and laying off workers 3. may be forced out of business

Phase 1 General Prosperity;economy going up,

1.people buy more goods and services 2.businesses provide more goods and services and hire more employees.

What is a business cycle?

The up and the downs