IB Economics SL 3.1.4 Business cycle
IB Economics SL 3.1.4 Business cycle
Students practise sketching business cycle diagrams and defining recession using textbook criteria—two consecutive quarters of negative real GDP growth.
How this is tested
- sketch a business cycle with trend GDP, labelling boom, slump, recovery, and recession
- define recession as two consecutive quarters of negative real GDP growth
- interpret real GDP deviations from potential output on a business cycle diagram, distinguishing short-run