Lesson #15:
During this class students will explore the yet another phenomenon related to free market and mixed economic systems. The economic cycle, or business cycle, is a term given to describe the cyclical fluctuation between economic prosperity and economic recession. This cycle will be analyzed, and the fundamental forces which drive the cycle will be explored.
Students will gain a rudimentary understanding of how the characteristics associated with economic prosperity actually prime the economy for recession, and how the characteristics associated with recession will prime the economy for subsequent economic prosperity.
Students will learn the following terms used to describe the various stages of the economic cycle:
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Some Key Definitions economic (business) cycle: long-term pattern of alternating periods of economic prosperity (growth, expansion), (recovery) and decline (recession), characterized by changing employment, industrial productivity, and interest rates. prosperity: A period of general economic growth; specifically, an increase in GDP for two or more consecutive quarters. decline: A period in an economic cycle following prosperity, during which the GDP falls. recession: A period of general economic decline; specifically, a decline in GDP for two or more consecutive quarters. depression: A period during which business activity drops significantly. High unemployment rates, lower , and possibly even deflation accompany a depression. recovery: A period in an economic cycle following a recession, during which the GDP rises. GDP: Gross Domestic Product; the total market value of all final goods and services produced in a country in a given year; equals total consumer investment and government spending, plus the value of exports minus the value of imports. |
In addition, students should gain an understanding of the following economic conditions which actually drive the
economic cycle:
Instructional Method and Evaluation:
Students will complete the handout entitled The Economic Cycle. After learning about the conditions associated with each stage of the economic cycle, students will use the web tools presented below to develop their own opinions regarding where Canada is presently positioned within the economic cycle. Students will defend their opinions within two or three paragraphs of writing.
Students will gather articles from the business section of online newspapers, magazines, or banking web sites in an attempt to analyze our current position within the economic cycle. Such resources include, but are not limited to:
Students must attempt to devlope a well-supported argument outlining:
Students will have the opportunity to continue working on this assignment during the next class.
Resources:
Relevant web sites:
