Describe the phases of the business cycle.

Description should include

• the four phases of the business cycle
• the characteristics of each phase
• how the phases affect business planning
• how businesses plan for the fluctuations of the economy
• internal and external factors that influence business cycles.

Process/Skill Questions:

• What is the role of consumer confidence in the economy? How does it relate to business cycles?
• What business cycle phase is the U.S. economy currently in? How does this phase affect the life of the individual? The national economy? The global economy?
• What is the difference between a recession and depression?
• Which businesses might continue to do well during a recession?
• Why should business owners always be monitoring economy and anticipating change in business cycle?