Unit 4: Business Fluctuations


What’s in This Chapter? Now that we know what GDP is and how it is measured, we are ready to analyze changes in GDP. Studying business fluctuations teaches us that during most years in politically stable, mixed or...

Read More

Section 1: Business Fluctuations

Recessions, Expansions, Peaks, and Troughs Business fluctuations are increases and decreases in economic activity, as measured by increases and decreases in real GDP. A recession (or contraction) is defined as a decrease in real...

Read More

Section 2: The Great Depression of the 1930s

Before the 1920s During the latter part of the 19th century and very early 20th century, various industrialized countries around the world enjoyed mostly free market economies. Government involvement was limited to essential...

Read More

Section 3: The Unemployment Rate

The Unemployment Survey The unemployment rate is one of the nation’s most important measures of economic health. Some people think that the unemployment rate is measured by counting the number of persons who claim...

Read More

Test Your Knowledge!

Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well! You have already completed...

Read More