Question and Answer Samples and Techniques Copyright © Texas Education Agency, 2011. All rights reserved. Business Cycle Model http://myplanetwealthblog.com/wp-content/uploads/2009/01/business-cycle.jpg 2 Copyright © Texas Education Agency, 2011. All rights reserved. The Business Cycle Prosperity Low unemployment Production is high New businesses open Recovery People go back to work Production starts increasing Spending increases Recession Spending decreases Unemployment rate increases Depression Low productivity High unemployment 3 Copyright © Texas Education Agency, 2011. All rights reserved. 4 Copyright © Texas Education Agency, 2011. All rights reserved. 5 Copyright © Texas Education Agency, 2011. All rights reserved. • The following slides are example questions using the layouts in the Quiz Show template. View them in slide show to see the answer animations. 6 Copyright © Texas Education Agency, 2011. All rights reserved. List the four business cycle phases. 7 Copyright © Texas Education Agency, 2011. All rights reserved. What is a characteristic of Recovery? Gross Domestic Product decreases Inflationary period A period of decreased prices (deflation) Increased unemployment Productivity decreases 8 Copyright © Texas Education Agency, 2011. All rights reserved. Describe and list the general economic activity indicators? Gross Domestic Product National Debt Employment Rate of Inflation 9 Copyright © Texas Education Agency, 2011. All rights reserved. Changes in GDP influences the business cycle. 10 Copyright © Texas Education Agency, 2011. All rights reserved. Which part of the business cycle is also referred to as the trough? 11 Copyright © Texas Education Agency, 2011. All rights reserved.