Journey Through the Economic Cycle PT.2

Journey Through the Economic Cycle PT.2

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  • depression: causes
  • A economic depression is when the economy is at its lowest.
  • Low demand for production of G&S causes this.
  • The stock market crashing jump starts this process.
  • Depression: effects
  • There is a  very low production rate and demand.
  • High unemployment is a result of this.
  • People stop buying goods because they have no money.
  • depression: economy
  • The GDP is at its lowest during this time.
  • High capacity at manufacturing plants because no one is buying anything.
  • Production will be low because of the low demand.
  • recovery: causes
  • A economic recovery is when the economy is going up from a recession or depression.
  • A renewed demand in production for various reasons.
  • recovery: effect
  • Increase in business activity
  • With the lower unemployment more people have money
  • Recovery:  economy
  • The GDP goes on the rise.
  • Economic activity and production increase.
  • Decline in unemployment because of the need for workers for manufactures trying to meet demand
  • Steady inflation rate growth is set.
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