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During the expansion phase, production, income, and spending all rise
Hiring
Sales are through the roof! I'm hiring two new employees.(GDP RISING)
I finally found a full-time job! Things are looking great. (UNEMPLOYMENT FALLING
The economy is growing. Businesses are expanding, more people are working, and customer spending increases.
During the expansion phase, production, income, and spending all rise
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I'm making more money than ever but groceries are expensive (HIGH INFLATION)
I can't keep up with all these customers, but my supply cost keeps going up! (LOW UNEMPLOYMENT)
Hinghest prices in 20 years!!!
At the peak, economic growth hits its limit before slowing down
The economy is at its highest point. Businesses are making record breaking profits, but resources are stretched and prices rise quickly
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The economy slows down. Businesses cut workers and people spend less. At the trough, the economy hits its lowest point before
Sales dropped so much I had to close one store. (GDP FALLING, LOW SPENDING)
I lost my job, but I'm hopeful things will get better soon. (HIGH UNEMPLOYMENT)