The Four Stages Of The Economy In The United States

What exactly is the economy? The economy simply refers to all of the activities related to making and distributing goods and services in a geographic area or country. When the economy would start to decline, it would affect our income. There are four stages of the economy, which we called the Business cycle. The first stage is called recovery, in which the economy is growing and people are more optimistic about spending money. The second stage is called peak, which is when the economy is doing great, prices are high because demand is high, and the economy just couldn’t get any better than what it is during this period in business cycle. The third stage called recession is when jobs are no longer in demand, production is decreasing, and people are pessimistic. The fourth stage called trough, is when the economy had reached its lowest peak in which it is in a standstill. That is until people start spending again, businesses hiring more employees, and …show more content…
He used a company called Alcoa, a company that specializes in lightweight metals and advanced manufacturing techniques. Jim Cramer said, “My first takeaway, overall? The U.S. economy is doing better than expected. Kleinfeld hammered that home in every venue, and I believe it,” the “Mad Money,” He said. It was because Alcoa breaks many of its markets and business related to non-retail commerce, so it would provide a take on anything with metal. Alcoa would also give an outlook on their end markets to their investors, which is a great advantage when it comes to buying stocks. Jim Cramer had received much from this investment, and liked what Kleinfield had to say about U.S economic health when describing trucks as “fascinating story,” because growth went from 9 to 11 percent, when 6 to 8 was what seemed to outcome. Thus, an increase in percentage to economy is an example of why the economy is currently in a