Economic Conditions Organizer Continued Part B Situation Prosperity Recession Depression Recovery Employment Unemployment Prolonged period of high Unemployment Labor: People who increases as workers unemployment decreases companies want to work are are laid off. begin to rehire workers working; unemployment low Wages: Good Supply and Demand decreases as Demand for products Demand increases; GDP demand of people lose jobs; and services is very begins to rise goods and GDP: Increasing GDP: growth slows for weak; GDP falls rapidly services trend Consumer Demand: 2 or more quarters Increasing Possible Businesses decrease Business failures and Businesses begin actions of Profits strong as is production as demand closings increase; rehiring and increasing businesses production decreases; profits companies make production; companies Companies hiring & suffer Businesses may changes (such as may again begin expanding (Macy’s strategize on ways to moving employees from recruiting efforts at may open more stores) stimulate demand for full time to part time to colleges goods & services decrease hours and reduce benefits) just to stay open
Economic Conditions Organizer Continued Part B Situation Prosperity Recession Depression Recovery Employment Labor: People who want to work are working; unemployment low Wages: Good Unemployment increases as workers are laid off. Prolonged period of high unemployment Unemployment decreases companies begin to rehire workers Supply and demand of goods and services trend GDP: Increasing Consumer Demand: Increasing Demand decreases as people lose jobs; GDP: growth slows for 2 or more quarters Demand for products and services is very weak; GDP falls rapidly Demand increases; GDP begins to rise Possible actions of businesses Profits strong as is production Companies hiring & expanding (Macy’s may open more stores) Businesses decrease production as demand decreases; profits suffer Businesses may strategize on ways to stimulate demand for goods & services Business failures and closings increase; companies make changes (such as moving employees from full time to part time to decrease hours and reduce benefits) just to stay open Businesses begin rehiring and increasing production; companies may again begin recruiting efforts at colleges
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