... the movement of economic activity that occurs around the growth trend. Many events in society cause these fluctuations to occur. The business cycle is divided up into four stages. They include the peak, the downturn, the trough and the upturn. The peak represents the output being high or the Gross Domestic Product (GDP) being high. The economy is booming at this time. As ... . The upturn must last two consecutive quarters to be called an expansion. Before the Great Depression of the 1930s the general economic thought was that these phases of the business cycle were normal. The must just ...

• Word Count: 1132
• Approx Pages: 5
• Grade Level: High School

"A Weak Effect on Output" Real government purchasing was moving in the same direction as the GDP and the business cycle. The government had cut spending because of the falling production and the rise of unemployment. The massive bulge in spending during 1940 and 1941 was the result of the United ... States military buildup following Germany's defeat of France. The stock of money measured grew steadily during the 1920s, but following its peak in 1929 it had fallen until 1933. The decline of spending from 1929 through 1933 was obviously linked with the falling stock of money. The equation that ...

• Word Count: 261
• Approx Pages: 1
• Grade Level: High School