Module 14 Lesson 2 Mastery

Prosperity/Peak

Unemployment stays down while income is relatively high. Consumers have confidence about the future of the economy which leads to them making more purchases. Producers expand businesses to take advantages of marketplace opportunities. There are high levels of production and trade. Credit is available to consumer, so its easy to get a loan.

Recession/ Contraction

Contains economic low turn that lasts about 6 months but could last longer. Consumers will most likely shop for their needs more than their wants and in this period of the cycle, CPI, GDP, and per capita GDP will all decrease.

Depression/Trough

Unemployment is very high. Less products and services will be produced because there won't be a lot of people willing to buy things. At this point trade is low. CPI,GDP, and per capita GDP are at their lowest and it is very hard to get a loan.

Recovery/ Expansion

Unemployment drops and the creation of products and services increase. GDP, CPI, and per capita GDP begins to increase again and it gets easier to get loans.