Presentation Plus Chapter 3 Section 2 PDF

Chapter 3 Economic Activity in a Changing World Section 3.2 The Business Cycle Does the business always make a profit? Objectives Define business cycle Illustrate the business cycle Determine the situations during each phase of a business cycle Definition econ f...

Chapter 3 Economic Activity in a Changing World Section 3.2 The Business Cycle Does the business always make a profit? Objectives Define business cycle Illustrate the business cycle Determine the situations during each phase of a business cycle Definition econ fall omic and a ct i vity s e of r i Four Stages of the Business Cycle The business cycle of one country can affect business cycle the rise and fall of other trading partners. economic activity Prosperity is the peak of economic activity. Recession is when economic activity slows down. Depression is a deep recession. Recovery is a rise in business activity after recession or depression. The Business Cycle The Great Depression The stock market crash on October 29, 1929, or “Black Tuesday,” marked the beginning of the Great Depression. Throughout the 1920s, the U.S. economy expanded rapidly, and the nation’s total wealth more than doubled between 1920 and 1929, a period dubbed “the Roaring Twenties.” The stock market, centered at the New York Stock Exchange on Wall Street in New York City, was the scene of reckless speculation, where everyone from millionaire tycoons to cooks and janitors poured their savings into stocks. As a result, the stock market underwent rapid expansion, reaching its peak in August 1929. However this didn’t last leading to Stock market crash. Graphic Organizer Many banks Unemployment around the rose nearly country 800 percent The Many towns The GDP fell failed Great and other civic nearly 50 Depression bodies printed percent The average their own The money money manufacturing supply fell wage was 5 by one-third cents an hour Recovery In 1939, the United States was beginning to recover from the depression when World War II began. The war increased the rate of recovery because of the demand for production.