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The economic cycle is the tendency of national or global economic activity to fluctuate between boom, recession, slump
and recovery.

Boom a time of rapid economic growth, typically linked with:
Increased consumer spending as people feel confident and are more likely to borrow money to finance more spending.
Low unemployment.…

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Recovery when economic growth will start to rise towards the average level again, typically linked with:
Consumer confidence grows ­ increased borrowing and spending.
Firms increase output and investments occur.
Unemployment will decrease.
Inflation will stop falling.

Leading indicators are early signals of the direction of economic activity e.g. business/consumer…


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