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The Trade Cycle in Pictures Objectives To check understanding of what the different stages in the trade cycle mean. For students to think about the actual effects of the trade cycle To consider the problems of predicting the economy Extension: To discuss lagging and leading indicators. What to do There are a number of indicators of economic activity. Where in the trade cycle do they appear? Move the letter to right spot on the diagram and then jot down why it is there. A: Rising house construction D: Rising homelessness E: Rising demand for steel B: The number of job vacancies rises C: Increasing hours of overtime F: More people use pawnbrokers J: Rising air traffic G: Rising quantity of mail I: Home delivered pizza becomes more popular H: Slower delivery times K: Falling share prices L: Rising lipstick sales M: Rising real income N. Rising car sales R: Imports of sewing machines rise P: Growing mountain of unsold bricks Q: Fast food shops cut their prices O: More rental housing available U: More skips start appearing on the streets S: Increasing supply of credit X: Oil refineries report a reduction in stocks V: Sales of milk chocolate start to decline T: The cost of shipping goods around the world starts to rise Y: Citizens Advice Bureau gets more callers Z: Rising government spending W: Shops delivering lunchtime sandwiches to offices raise their prices Real GDP A B C D E F G H I J K L M N O P Q R S T V W X Z U The economic cycle in pictures Y Time