The Business Cycle
All the amazing parts to our business cycle
What is The Business Cycle
The Business cycle is the economy and how it works its way to one condition to the other and all the way back again just like it has for along time. Our economy has went through the stock market crash, the Great Depression and many other hard times and we managed to make our way out of the deep hole of depression into recovery.
Prosperity - Is The First Part
This tends to be when the demands for services and goods is at a high and the rate in the GDP is still steadily growing. Prosperity is also the highest point in the whole business cycle.
Recession - Is the Second part
Recession begins when the unemployment rates begin to plummet lower and businesses start to lower there productions. At this time unemployment is still rising but the GDP growth is at a stand still for a long period of time, usually unknown for exactly how long.
Depression - Is the Third Part
Depression begins to appear when the recession period is deepening and continues to spread through out our economy. At this time the unemployment rates still high. During this time the sales from the consumers is weak followed by business failures. All the while GDP increasingly drops.
Recovery- Is the fourth and Last part of the Business Cycle
In the mists of all the downfalls, recovery is soon to follow. Unemployment rates will soon be rising and services and goods will be in high demand again.Slowly and surely the GDP will also begin to rise as well.Recovery comes at its own speed and will either be fast or slow but along with it the Prosperity will take its place in our economy.