Business, 05.05.2020 15:39 tateandvioletAHS14AY

Expansionary / Recovery
P = Peak
C = Contractionary/Recession
T = Trough
1. The price of bread has increased 5% over the past three months.
2. Interest rates at a low of 2% cause consumers to take out loans and buy homes.
3. The sale of all goods and services are down for the 5th consecutive month.
4. Due to factory closures unemployment has risen to a five year high of 10%

5. Due to increased consumer spending, the Federal Reserve raises interest rates to slow the economy down.
6. The DOW Jones industrial average (Stock prices) reaches an all-time high.
7. GDP declines for four consecutive months, causing the Federal Reserve to lower interest rates.
8. The unemployment rate is at 3.4%, a new 15 year low.
9. The economy has maxed out and is no longer growing.
10. What is the next phase after experiencing a Trough.

Answers: 3

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Expansionary / Recovery
P = Peak
C = Contractionary/Recession
T = Trough
...

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