The Trade Cycle in PicturesThe Trade Cycle in Pictures

ObjectivesObjectives

To check understanding of what the To check understanding of what the different stages in the trade cycle mean.different stages in the trade cycle mean.

For students to think about the actual For students to think about the actual effects of the trade cycleeffects of the trade cycle

To consider the problems of predicting the To consider the problems of predicting the economyeconomy

Extension: To discuss lagging and leading Extension: To discuss lagging and leading indicators.indicators.

What to doWhat to do

There are a number of indicators of There are a number of indicators of economic activity.economic activity.

Where in the trade cycle do they appear?Where in the trade cycle do they appear?

Move the letter to right spot on the Move the letter to right spot on the diagram and then jot down why it is there.diagram and then jot down why it is there.

A: Rising house construction

B: The number of job vacancies rises

G: Rising quantity of mail

C: Increasing hours of overtime

D: Rising homelessness

H: Slower delivery times

K: Falling share prices

E: Rising demand for steel

M: Rising real income

L: Rising lipstick sales

F: More people use pawnbrokers

I: Home delivered pizza becomes more popular

J: Rising air traffic

N. Rising car sales

O: More rental housing available

P: Growing mountain of unsold bricks Q: Fast food shops cut their prices

T: The cost of shipping goods

around the world starts to rise

U: More skips start appearing on the

streets

V: Sales of milk chocolate start to

decline

X: Oil refineries report a reduction in stocks

Y: Citizens Advice Bureau gets more

callers

W: Shops delivering lunchtime sandwiches

to offices raise their prices

R: Imports of sewing machines rise

S: Increasing supply of

credit

Z: Rising government

spending

Real GDP

TimeThe economic cycle in pictures

A B C D E F

G H I J K L

M N O P Q R

T U V W X Y Z

S