Expansionary / Recovery
P = Peak
C = Contractionary/Recession
T = Trough
1.________ The price of bread has increased 5% over the past three months.
2.________ Interest rates at a low of 2% cause consumers to take out loans and buy homes.
3.________ The sale of all goods and services are down for the 5th consecutive month.
4.________ Due to factory closures unemployment has risen to a five year high of 10%
5.________ Due to increased consumer spending, the Federal Reserve raises interest rates to slow the economy down.
6.________ The DOW Jones industrial average (Stock prices) reaches an all-time high.
7.________ GDP declines for four consecutive months, causing the Federal Reserve to lower interest rates.
8.________ The unemployment rate is at 3.4%, a new 15 year low.
9.________ The economy has maxed out and is no longer growing.
10._____ What is the next phase after experiencing a Trough.
