Stages of the economic cycle
- Created by: LML09
- Created on: 02-06-15 12:43
View mindmap
- Economic Cycle
- Describes the fluctuations in the levels and rates of growth of GDP over a period of time. It is sometimes referred to as the trade or the business cycle
- There are four stages: Boom, Downturn, Recession and Recovery
- Boom:A time of rapid growth and expansion in the economy
- Recovery: Positive growth returns, slowly at first then picks up pace
- Recession: There are at least two consecutive quarters of negative growth
- Downturn: The boom slows and the rate of growth decreases
- There are four stages: Boom, Downturn, Recession and Recovery
- Boom
- High output
- Low unemployment
- Rising incomes
- High Inflation
- High base rate
- Rapid % Growth GDP
- Downturn
- Static output
- Increasing unemployment
- Static incomes
- Slowing Inflation
- Falling base rate
- Slowing % Growth GDP
- Recession
- High unemployment
- Falling output
- Low inflation
- Falling incomes
- Negative % Growth GDP
- Low base rate
- Recovery
- Static incomes
- Increasing base rate
- Increasing output
- Increasing % Growth GDP
- Rising inflation
- Falling unemployment
- Describes the fluctuations in the levels and rates of growth of GDP over a period of time. It is sometimes referred to as the trade or the business cycle
Comments
No comments have yet been made