Relating theRelating the

Business CycleBusiness Cycle

to theto the

Romance CycleRomance Cycle

““You look good. You You look good. You look verrrry good.”look verrrry good.”

Relating Business Cycle To Romance CycleRelating Business Cycle To Romance Cycle

11stst

datedate

Jealousy sets inJealousy sets in

Gets engagedGets engaged

She goes off She goes off to college.to college.

HHe e uses the meeting line on uses the meeting line on unsuspecting freshmen girlsunsuspecting freshmen girls

You decide toYou decide toget marriedget married

Wedding MarchWedding March for womenfor womenDeath March for menDeath March for men

Baby-5 months laterBaby-5 months laterBut – he does nothing but make But – he does nothing but make loud noises atloud noises at one endone end, and has, and hasno discipline at the other endno discipline at the other end..

You become aYou become ahappy familyhappy family

One loses a jobOne loses a job

But with educationBut with educationa job is gained asa job is gained aswell as a new well as a new househouseMust have good Must have good “meeting “meeting

line”line” to get to get the the first date.first date.

PeaPeakk

TroughTrough

One CycleOne Cycle

Expan

sion

Expan

sion

Real GDPReal GDPper yearper year

Peak:Peak: real GDP reaches its maximum.

Recession:Recession: real GDP declines 6 months.

Expansion:Expansion: an upturn - real GDP rises.Trough:Trough: real GDP reaches its minimum.

Recession

Recession

Time

PeaPeakk

Four Phases of the Business CycleFour Phases of the Business CycleFour Phases of the Business CycleFour Phases of the Business Cycle

[Have averaged five years][Have averaged five years]

Expansi

on

Expansi

on

PeakPeakJuly, 1981July, 1981

TroughTroughNov., 1982Nov., 1982

PeakPeakJuly, 1990July, 1990

TroughTroughApril, 1991April, 1991

PeakPeakMarch, 2001March, 2001

TroughTroughJune, 2001June, 2001

Spring, 2007Spring, 2007

Exp

ansi

on

-8 y

ears

Exp

ansi

on

-8 y

ears

Co

ntractio

n

Co

ntractio

n [R

ecession

][R

ecession

]

Exp

ansi

on

-10

year

s

Exp

ansi

on

-10

year

s

Co

ntractio

nC

on

traction

[Recessio

n]

[Recessio

n]

Exp

ansi

on

Exp

ansi

on

At President Reagan’s funeral, Bill andAt President Reagan’s funeral, Bill andHillary were both seen dozing off.Hillary were both seen dozing off.

President Reagan, who never missed a chance for a goodPresident Reagan, who never missed a chance for a goodone-liner, raised his head from the casket and said, one-liner, raised his head from the casket and said,

““I see the Clintons are finally sleeping together.”I see the Clintons are finally sleeping together.”