Unison Case Study

In: Business and Management

Submitted By RachelSotolongo
Words 561
Pages 3
1. Describe the stages of the business cycle.
The stages of the business cycle are; boom, downturn, recession and recovery.
• Boom - the boom stage is a period of time during which sales of a product or business activity increases very rapidly. During the boom the economy grows, jobs are plentiful and the market brings high returns to investors.
• Downturn - the downturn stage is a slowdown in economic activity. When there is a high level of inflation in a boom, it can lead to a recession.
• Recession – the recession stage is a period of general economic decline that last longer than a few months. It is visible in industrial production, employment, real income and wholesale retail trade; this stage begins just after the economy reaches a peak of activity and ends as the economy reaches its trough.
• Recovery – the recovery stage is a time when the economy becomes stronger and there is an upturn in the business cycle’ more jobs are created and more goods and services are supplied by business; unemployment begins to fall and very cautiously consumer spending starts to increase.

2. Explain how recession affects low-income families.
Recession is a tragedy for low-income families. Unemployment takes center stage while the families dealing with the recession suffer. Job loss affects the stability of families and individual. With unemployment rates running extremely high during a recession, individuals and families struggle to find work to pay the bills each month. Reduced income leads to reduced entertainment, dinning and extracurricular activity expenses; people cut back on extras during a recession, so many families must make drastic changes to their pre-recession lifestyle. Recession also affects the education; many families cannot afford to send their children to college during a recession. Furthermore, the college experience changes for students who do…...

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