Understanding the Business Cycle
A worksheet for 6th graders to learn about the different phases of the business cycle and their characteristics.
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Understanding the Business Cycle
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Read each question carefully and answer to the best of your ability. This worksheet will help you understand the different stages of the business cycle.
1. What is the business cycle?
The changes in weather patterns throughout the year.
The natural ups and downs of an economy.
The process of starting a new business.
A cycle of planting and harvesting crops.
2. During which phase of the business cycle does the economy grow rapidly?
Contraction
Trough
Expansion
Peak
3. The highest point of economic activity in the business cycle is called the .
4. When the economy is shrinking, it is in the phase.
5. A severe and prolonged contraction is known as a .
6. During a recession, unemployment usually decreases.
True
False
7. The economy always stays in one phase of the business cycle for a long time.
True
False
8. Describe one characteristic of the expansion phase of the business cycle.
9. What is the main difference between a peak and a trough in the business cycle?