Download Business cycle Macro activity

Increase in the
value of real
wages
Decrease in the
value of real wages
Increase in the
Aggregate demand
Decrease in the
Aggregate demand
Increase in the Increase the amount
amount of Ford Fof business
150s purchased
spending on
this year
technology
Decrease in the Decrease the amount
amount of tractors
of consumer
purchased by
purchases of all
farmers this year
goods
Increase in
Decrease in imports
imports from China
from Egypt
Instructions: Have students draw a BIG business cycle on poster paper, on the sidewalk, on banner paper in
the hallway, etc. In partners have them place these cards (cut them out!) where they belong on the business
cycle. They will have to think about the concepts (DOK2-3 here) in order to place them correctly. At the end,
go over the cards as a class.
Loss of jobs due
to an economic
downturn
More lifeguard jobs
because
neighborhood pools
open for the spring
Increase in the
Decrease in the
amount of money
amount of money
causing a decrease
which causes an
in the value
increase in the
value
Nike realizes that A KIA plant opens
it’s cheaper to
in WestPoint, GA
use a factory in
that hopes to
India than in US, employ 5,000 people
so the plant in
Chicago closes
EXPANSION CONTRACTION
PEAK
TROUGH
TREND LINE
Real GDP
Increase in the value of
real wages
(Contraction)
Decrease in the value
of real wages
(inflation = expansion)
Increase in the interest
rate
(Tight $ = expansion)
Increase the amount of
government spending
(expansionary =
contraction)
Decrease the amount of
government spending
Contractionary =
expansion)
Increase in the
Aggregate demand
(expansion)
Decrease in the interest
rate
(easy $ = contraction)
Decrease in the
Aggregate demand
(contraction)
Increase in the amount Decrease in the amount
of money which causes of money which causes
a decrease in the value an increase in the value
(inflation = expansion) (Deflation = contraction)
Increase in the amount Decrease in the amount
of Ford F-150s
of tractors purchased by
purchased this year
farmers this year
(GDP = expansion)
(GDP = contraction)
Increase in imports
Decrease in imports from
from China
Eqypt
(GDP = contraction)
(GDP = expansion)
Loss of jobs due to an
economic downturn
Unemployment =
contraction)
More lifeguarding jobs
because neighborhood
pools are opening for the
spring
(unemployment =
expansion)
Increase in taxes
(contraction)
Decrease in taxes
(expansion)
It has been discovered
by Nike that it’s cheaper
to use a factory in India
than it is to make shoes
in the US, so the plant
in Chicago closes
(contraction)
EXPANSION
PEAK
T RE ND LINE
A KIA plant opens in
WestPoint, GA that
hopes to employ 5,000
people
(expansion)
CONT RACT ION
T ROUGH