Lesson Plan
Course Title: Principles of Business, Marketing, and Finance
Session Title: Discovering Business Cycles
Performance Objective:
The student differentiates between the types of economic systems with emphasis on the private
enterprise system and the United States economy.
Specific Objectives:
(3)(B) Identify business cycles.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities
may result in the elimination of one or more of the TEKS listed.
Interdisciplinary Correlations:
English:
§110.42. English I (c) The student is expected to:
(8)(B) read in such varied sources as diaries, journals, textbooks, maps, newspapers, letters,
speeches, memoranda, electronic texts, and other media;
(6)(A) expand vocabulary through wide reading, listening, and discussing; and,
(4)(F) compile written ideas and representations into reports, summaries, or other formats and draw
conclusions.
Economics:
§118.2. Economics (c) The student is expected to:
(19)(C) Analyze the impact of business cycles on U.S. history.
Instructor/Trainer
References:
1. Brown, Betty J. and Clow, John E. (2003). Introduction to Business: Fifth Edition. New York:
Glencoe/Mac-Graw Hill.
Instructional Aids:
1. Optional – Overhead, SmartBoard, Internet, ELMO (if available and where applicable)
Materials Needed:
1. Textbook
2. Internet
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1
Learner Preparation:
Learners will review vocabulary terms the night before and read textbook the night before.
Lesson Plan
Vocabulary (Please see PowerPoint pages 1 – 3. Share with students prior to guided practice):
Business Cycle
The movement of the economy from good times to bad times and back again in four stages:
prosperity, recession, depression, and recovery. The rise and fall of economic activity over time.
Prosperity [Peak]
The high point of a business cycle, also called the peak, when employment is high, the demand for
goods and services is high, and business are turning out goods and services as fast as they can.
Recession [Contraction]
A stage in the business cycle in which the economy is in a period of decline—spending falls so fewer
goods and services are demanded and unemployment rises.
Depression [Trough]
The lowest point in a business cycle. It is also considered a deep recession. A depression is
characterized by high unemployment and low productivity.
Recovery [Expansion]
A rise in business activity after a recession or depression. Production starts to increase,
unemployment decreases, and GDP grows.
General Economic Activity Indicators
Gross Domestic Product, Unemployment, Inflation, and National Debt
Gross Domestic Product (GDP)
The total dollar value of all the goods and services produced in a country in a given year.
Productivity
A measure of how much a country produces.
Unemployment Rate
Percentage that reflects the number of people who are able to work but do not have a job during a
given period of time.
Inflation Rate
Percentage that reflects a general increase in the cost of goods and services.
National Debt
The total amount of money a government owes.
Budget Deficit
When the government spends more on programs than it collects in taxes, or expenses exceed
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2
income.
Budget Surplus
When the government collects more in taxes than it spends on programs, or income exceeds
expenses.
Brown, Betty J. and Clow, John E. (2003). Introduction to Business: Fifth Edition. New York:
Glencoe/Mac-Graw Hill.
Introduction (LSI Quadrant I):
Prosperity, recession, depression, and recovery are terms representative of business cycle phases.
We often hear these terms, but do we know what they mean? What phase of the business cycle are
we experiencing today? What makes the economy move from one phase to another? Who or what
are the key players?
Today, we will learn the answer to all of these questions as we identify parts of the business cycle.
Outline
Outline (LSI Quadrant II):
Instructors can use the PowerPoint presentation, slides, handouts, and note pages to support and
reinforce the following outline.
MI
Outline
Notes to Instructor
I. Application – Guided Practice
I. Application – Guided Practice
A. Complete an activity in which the
A. Distribute Discovering Business
student labeling the parts of a
Cycle (Microsoft Word)
business cycle.
1. Complete page 1
B. Match the words peak, trough,
2. Answer key is on page 4
contraction, and expansion to parts
3. Instructor can use
of a business cycle.
Smartboard, ELMO, or
overhead with PowerPoint
page 4 during this activity.
II. Application – Independent Practice
B. Distribute Discovering Business
A. Complete a grid that identifies
Cycle (Microsoft Word)
characteristics
of
the
parts
of
the
See Multiple
business
cycle
using
economic
1. Complete page 1
Intelligences
indicator
descriptions.
2. Answer key is on page 4
(MI) key
B. Complete a puzzle that reinforces
below.
terms taught during class
II. Application – Independent Practice
A. Distribute Discovering Business
Cycle (Microsoft Word)
1. Complete page 2
2. Answer key is on page 4
B. Distribute Discovering Business
Cycle (Microsoft Word)
1. Complete page 3
2. Answer key is on page 4
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Summary
I. Summary Review Questions
A. Answer questions from the Quiz
Show.
I. Summary Review Questions
A. Display review questions saved in
the Quiz Show section of the
PowerPoint, pages 5 - 11. (View
in Slide Show mode.)
Evaluation
I.
Evaluation
A. Students individually research this
country’s economic indicators and
relate them to the business cycle.
Extension/Enrichment
I. Extension/Enrichment
A. Students explore other website
activities based on similar content.
B. Students research the beginning of
the last recession.
I. Evaluation
A. Utilize the Economic Indicator
Analysis Microsoft Word document
to complete this activity.
B. Teacher can divide students into
small groups.
C. Teacher can assign students to
different periods or sets of months,
i.e., separate by presidential terms,
historical eras, or years.
D. Students can expand research
beyond cited websites.
I.
Extension/Enrichment
A. Allow students to explore other
websites activities based on
similar content such as:
http://www.frbsf.org/education/activities/chairman/ind
ex.html
B. Engage the students in a research
project in which they determine
the beginning month/year of the
last US recession.
1.
Students determine resources
needed to substantiate
response.
Copy and paste Multiple Intelligences Graphic in appropriate place in left column.
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
IntraPersonal
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Interpersonal
Naturalist
Existentialist
Application
Guided Practice (LSI Quadrant III):
Distribute Microsoft Word document entitled: Discovering Business Cycles, page 1 (the answers
can be found on Discovering Business Cycles – Answer Sheet on page 4).
Independent Practice (LSI Quadrant III):
Distribute Microsoft Word document entitled: Discovering Business Cycles, pages 2 and 3 (the
answers can be found on Discovering Business Cycles – Answer Sheet on page 4).
Summary
Review (LSI Quadrants I and IV):
•
•
Question: List the four business cycle phases.
Answer: Prosperity, recession, depression, and recovery.
•
•
Question: What is a characteristic of Recovery?
Answer: Decreased prices (deflation)
•
•
Question: Describe and list the general economic activity indicators?
Answer: They are major influencers (measures) of a country’s economic performance - GDP,
National Debt, Inflation, Unemployment.
•
•
Question: Changes in GNP influences the business cycle. True or False?
Answer: True
•
•
Question: Which part of the business cycle is also referred to as the trough?
Answer: Depression
Evaluation
Informal Assessment (LSI Quadrant III):
Evaluate answers to independent practice.
 Address issues raised in independent practice.
Formal Assessment (LSI Quadrant III, IV):
Economic Indicator Analysis
 A grading rubric is attached (Business Cycle Assessment Rubric).
 Rubric can be modified or replaced using http://rubistar.4teachers.org/
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5



Students can be placed in collaborative groups to complete project.
Teacher can assign students to different periods or sets of months, i.e., separate by presidential
terms, historical eras, or years.
Students can expand research beyond cited websites.
Extension/Enrichment (LSI Quadrant IV):
 Allow students to explore other websites activities based on similar content such as:
http://www.frbsf.org/education/activities/chairman/index.html
 Engage the students in a research project in which they determine the beginning month/year of the
last U.S. recession.
Useful websites:
http://www.crosswordpuzzlegames.com/cgi-crosswordpuzzlegames/create
http://www.councilforeconed.org/resources/lessons/ap_resources/AP-Macroeconomics-Visual-2-7.pdf
http://www.bls.gov/eag/
http://www.eduref.org/Virtual/Lessons/Social_Studies/Economics/ECO0006.html
http://www.econedlink.org/lessons/index.php?lesson=EM131
http://www.nber.org/
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6
ECONOMIC INDICATOR ANALYSIS
Instructions:
Complete the table using data about US economic indicators. Access the US Department of Labor’s website for the
Bureau of Labor Statistics, http://www.bls.gov/; the US Department of Treasury’s website for the Bureau of the Public
Debt, http://www.treas.gov/; and, US Department of Commerce’s website for the Bureau of Economic Analysis,
http://www.bea.gov/index.htm. Replace the periods with consecutive months or quarters, i.e., May 2009 (Period 1)
through September 2009 (Period 5).
Prepare graphs displaying the various economic indicator trend data researched. Use the graphs to determine the phase
of the business cycle.
Present graphs and business cycle results to class.
Indicator
Period 1
Period 2
Period 3
Period 4
Unemployment
Rate
Inflation
Rate
Productivity
National Debt
(Public Debt)
Gross
Domestic
Product
Other
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Period 5
DISCOVERING BUSINESS CYCLES
Instructions:
Label the parts of the business cycle using the following terms: Prosperity,
Depression, Recovery, and Recession.
Match:
Draw a line to match parts of the business cycle with terms that describe
them.
Prosperity
Contraction
Depression
Trough
Recovery
Peak
Recession
Expansion
Instructions:
Show your understanding of the economic indicators by using the following
terms to describe how unemployment and productivity affect the business
cycle:
Increases
Decreases
High
Low
Recover
y
Prosperit
y
Recessio
n
Unemploymen
t
Productivity
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8
Depressio
n
DISCOVERING BUSINESS CYCLES
Instructions:
Show your understanding of the economic indicators by using the following
terms
1
2
3
4
5
6
7
8
9
ACROSS
DOWN
1. Lowest point in the business cycle
3. Prosperity, recession, depression,
and recovery
4. Contraction
6. Reflects the general increase in the
cost of goods and services
7. A general decrease in the costs of
goods and services
8. A rise in business activity after a
recession or depression
9. When the government spends more
on programs than it collects in taxes or
expenses exceed income
2. Characterized by low unemployment
and high productivity
5. The total amount of money the
government owes
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DISCOVERING BUSINESS CYCLES
Answer Key
Page 1
Business Cycle – See Business Cycle Model in textbook
Matching
Prosperity – Peak
Depression – Trough
Recovery – Expansion
Recession – Contraction
Page 2
Recovery
Unemployment Decreases
Productivity
Increases
Prosperity
Low
High
Page 3
Across
1. Depression
Recession
Increases
Decreases
8. Recovery
3. Business Cycle
9. Budget Deficit
4. Recession
Down
2. Prosperity
6. Inflation
5. National Debt
7. Deflation
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Depression
High
Low
Graphing : BUSINESS CYCLES
Student Name:
CATEGORY
Title
Labeling of X axis
Labeling of Y axis
________________________________________
10
Title is creative and
clearly relates to the
problem being
graphed (includes
dependent and
independent
variable). It is printed
at the top of the
graph.
The X axis has a clear,
neat label that
describes the units
used for the
independent variable
(e.g, days, months,
participants' names).
9
8
Title clearly relates to A title is present at
the problem being
the top of the graph.
graphed (includes
dependent and
independent variable)
and is printed at the
top of the graph.
7
SCORE
A title is not present.
The Y axis has a clear,
neat label that
describes the units
and the dependent
variable (e.g, % of
dogfood eaten;
degree of
satisfaction).
The Y axis has a clear The Y axis has a label. The Y axis is not
label that describes
labeled.
the units and the
dependent variable
(e.g, % of dogfood
eaten; degree of
satisfaction).
The X axis has a clear The X axis has a label. The X axis is not
label that describes
labeled.
the units used for the
independent variable.
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Type of Graph Chosen Graph fits the data
Graph is adequate
well and makes it easy and does not distort
to interpret.
the data, but
interpretation of the
data is somewhat
difficult.
Neatness and
Exceptionally well
Neat and relatively
Attractiveness
designed, neat, and
attractive. A ruler and
attractive. Colors that graph paper (or
go well together are graphing computer
used to make the
program) are used to
graph more readable. make the graph more
Preparedness
Student is completely Student seems pretty
prepared and has
prepared but might
obviously rehearsed. have needed a couple
more rehearsals.
Graph distorts the
data somewhat and
interpretation of the
data is somewhat
difficult.
Graph seriously
distorts the data
making interpretation
almost impossible.
Lines are neatly
drawn but the graph
appears quite plain.
Appears messy and
"thrown together" in
a hurry. Lines are
visibly crooked.
Content
Shows a good
understanding of
parts of the topic.
Often listens to,
shares with, and
supports the efforts of
others in the group
but sometimes is not
a good team member.
Collaboration with
Peers
Timeliness
Shows a full
understanding of the
topic.
Almost always listens
to, shares with, and
supports the efforts of
others in the group.
Tries to keep people
working well
together.
Shows a good
understanding of the
topic.
Usually listens to,
shares with, and
supports the efforts of
others in the group.
Does not cause
"waves" in the group.
The student is
Student does not
somewhat prepared, seem at all prepared
but it is clear that
to present.
rehearsal was lacking.
Does not seem to
understand the topic
very well.
Rarely listens to,
shares with, and
supports the efforts of
others in the group.
Often is not a good
team member.
All graphs were
A majority of the
One-half of the graphs Atleast one graph was
completed in a timely graphs were
were completed in a completed in a timely
manner.
completed in a timely timely manner.
manner.
manner.
Business Cycle
Trended data from
Trended data from
Trended data from
Trended data from
graphs greatly
graphs somewhat
graphs did not
graphs are incomplete
supports business
supports business
support business cycle and no business cycle
cycle and
cycle and
and presentation
was declared.
(1) Deduct points for formating, neatness and attractiveness.
(2) Modify or create a new rubric by going to http://rubistar.4teachers.org/
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TOTAL
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