In the medieval time, just outside a home of a fair maiden.
Fair maiden what saddes you so?
My favorite shop is now to expensive to buy from and I don"t know why?!!
Oh that's easy it is due to inflation that prices have risen and of course if measured by the inflation rate.
But will it ever be the price I can afforded again?
Oh, so now we hit a Depression calling for rise in prices for more expansion.
Change to a short walk in town as man explains to the woman.
Yes, for you see there it what we call a business cycle that goes on forever.
So I can shop again once an expansion happens?
Yes and once the cycle is at its peak, making goods more reasonably priced.
Good bye, fair maiden I am happy I was of service.
Have returned back to the young woman's home.
Thank you for your help I can wait to go shopping again.
Inflation- is the rise of a price of a good and decreased to the purchasing power of money. Inflation rate- is the percent change in a price year to year. Business Cycle- is the ups and downs of the economy. Depression- A large number of unemployed, the declining of income,and sever recession. Expansion- is the increase in economic activity and decrease in prices. Peak- is when real GDP stops at a expanding and begins to decline.