Understanding the Business Cycle
A Grade 7 social studies worksheet covering the phases, causes, and effects of the business cycle on an economy.
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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 phases of the business cycle and their impact on the economy.
1. The business cycle describes the fluctuations in economic activity.
2. During a period of , the economy is growing, and unemployment is typically low.
3. A is a significant decline in economic activity spread across the economy, lasting more than a few months.
4. The lowest point of a recession is called the .
1. Which of the following is NOT a phase of the business cycle?
Expansion
Peak
Inflation
Contraction
2. What usually happens to unemployment rates during a recession?
They increase
They decrease
They remain stable
They fluctuate unpredictably
1. The business cycle has a predictable duration and intensity.
True
False
2. Government policies can influence the business cycle.
True
False
1. Briefly describe the main characteristics of an economic expansion.
2. How might a recession impact a family's financial situation?
The diagram below illustrates a typical business cycle. Label the four main phases (Expansion, Peak, Contraction, Trough) on the diagram. You can use the text boxes provided to write your answers.
A:
B:
C:
D: