Business Cycle: Recovery, Peak, Recession, And Trough

The business cycle is the alternating periods of growth and decline. There is four stages of the business cycle: Recovery, Peak, Recession, and Trough. During the recovery period the economy is growing. This means that there will be more job openings and businesses will increase product. People are willing to spend more money because times are good for them at the moment and they are very optimistic about the future. During the peak period the economy is at its highest point. This means that prices will be high because demand is high. During the recession period the economy is declining. This means that people are losing their jobs and production is slowing. People are spending less money. During a tough the economy is at a standstill. Based on my research I think the economy is in a recovery because there is more job opportunities opening up and people are making more money.

In the article “U.S. Trade Deficit Widens as Exports Sag, Imports …show more content…
On Thursday the bank reported that they have better profits for the third quarter then the analysts were expecting. Citigroup was up two percent while Key-Corp went up by four percent. The shares in technology also rose in the beginning of trading. The Standard and Poor’s 500 indexes rose seven points, or 0.4 percent, to 2,001.While Dow Jones average went up by thirty points. The NASDAQ average rose by twenty nine points. The prices of bonds fell. Also the ten year Treasury note rose to around two percent. The price of oil fell by one percent to around forty six dollars per barrel in New York City. This article helps me make my decision about the stage that our economy is in because this article goes into detail about how the stock market is increasing the stocks. By increasing the stocks that will help boost our economy. Also because the stocks are increasing citizens of the U.S. fears are fading because now they