Key Phases of Business Cycles
Expansion: This is when the economy is growing. More people have jobs, and businesses are making more products. For example, when people start buying more things, companies get busier.
Peak: This is the very highest point of the economy. Everything is working at its best, and resources are being used fully. You can think of it like the economy being on fire with activity!
Recession: This is when the economy starts to slow down. If people stop buying things, like gym memberships, gyms may have a hard time keeping their doors open.
Trough: This is the very lowest point of the cycle. It’s a sign that things might start to get better soon. During this time, some businesses may have to let go of employees.
These cycles show how businesses change and adapt when the economy goes up and down.
Key Phases of Business Cycles
Expansion: This is when the economy is growing. More people have jobs, and businesses are making more products. For example, when people start buying more things, companies get busier.
Peak: This is the very highest point of the economy. Everything is working at its best, and resources are being used fully. You can think of it like the economy being on fire with activity!
Recession: This is when the economy starts to slow down. If people stop buying things, like gym memberships, gyms may have a hard time keeping their doors open.
Trough: This is the very lowest point of the cycle. It’s a sign that things might start to get better soon. During this time, some businesses may have to let go of employees.
These cycles show how businesses change and adapt when the economy goes up and down.