business cycle

business cycle

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  • Repression
  •  I wonder why I don't see as much workers anymore in this place. Its usually packed but now that there aren't as much workers their production is low.
  • We are in a recession due to the slow down of manufacturing orders, this caused them to not produce as much.
  • Repression
  • Hmmm..... so because of this recession you speak of, the rate of unemployment rises more?
  • Yes, but the consumer's confidence declines, perpetuating the recession as consumer spending drops.
  • Repression
  • So how does this have an impact on the economy?
  • There is a general drop in productivity . The GDP also declines, this is all thanks to the recession. Hopefully this won't become a depression. 
  • Depression
  • Wow! there's no food. 
  • We are in now in what is called a depression, which is basically a deep recession.  This is due to high unemployment, low productivity, and an excess capacity in manufacturing plants. This might last for years, and even worst, this will affect the entire country!
  • Depression
  • You're right,  every store in the town is basically empty.
  • Yup, because of the depression there is price deflation, financial crises, and bank failures. This is such a mess!
  • Depression
  • How long will we have to wait till this is over!!!!!!!???
  • The depression wont last forever. I would say wait a few years and everything will be back to normal.
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