Module 14 Lesson 2 Mastery Brochure

By Jennie Madden

Business Cycle

  • You should describe several characteristics of the state of the economy as you explain each phase including levels of consumer and business confidence, employment, income, trade, output, credit, investment, CPI, GDP, and per capita GDP.

The United States economy is a command economy. We go by a traditional economy meaning we follow rules set in the past by previous leaders. Around 2008, the economy started to crash. Consumer and business confidence declined and no one wanted to invest in stocks or start a business. The issue is when people do not spend money, no money regulates so the economy doesn't improve, but the people had no money to spend. Employment would decline as more people had to choose to cut back on employees or lose the business all together. Income was also not that great considering the money cuts. Trade was more expensive and output was damaged because not everyone wanted to buy things because the lack of money. Credit went off the charts as people had to charge to their credits in order to keep their homes and cars to go to work. The GPI had cancellations of beneficial effects because of the failing economy and there was a decrease in GDP. All of this contributors made the economy crash and people lived basically paycheck to paycheck trying to make ends meat. A lot of people lot their benefits and their homes to the economy crashing. Now it has gotten better and the housing market has gone up tremendously. We are now slipping out of the horrid economy crash and are doing a lot better. However it is extremely hard for anyone to get a job because they want qualified people. Also, gas prices are ridiculous.