13.1
Answer # 2, 3, 4, 5, 7
2. Business cycles can be determined by GDP.
3. Recession and Expansion.
4. Causes: enormous gap in the distribution of income, easy credit, global economic conditions,
and high US tariffs.
Effects: creation of Social Security Act, creation of SEC, creation of FDIC
5. When GDP declines for two consecutive quarters, it is considered a recession. Expansion is a
period of recovery from a recession. Economic growth is determined by the trend line that is
formed from the repeating business cycle.
7. The economy is going through expansion, a period of economic growth, since companies are
receiving more demand for their products.