Unit 8 Assignment
Business Cycles and Unemployment
Name _____Marie Diver________________________________________________________________
Answer the following questions thoroughly using economics terminology and complete sentences.
1. What is the basic cause of the business cycle? Worth 2 points.
The basic cause of the business cycle is the contraction, recovery, and expansion in the economy.
2. Following are Real GDP figures for ten quarters:
Quarter RGDP ( billions of dollars)
1 $ 400
2 500
3 300
4 200
5 300
6 500
7 800
600
700
800
900
1000
Peak
Peak
Expansion
Contraction
