The document compares the typical phases of a business cycle to stages in a romantic relationship. It describes: 1) The beginning of a relationship as analogous to the peak of the business cycle, with initial excitement. 2) Jealousy and engagement corresponding to the contraction or recession phase as challenges emerge. 3) Marriage, children, job losses, and gains mirroring the expansion period as the relationship and economy grow. The document then shifts to discussing the typical phases of a business cycle - peak, contraction, trough, and expansion. It provides examples of recent U.S. economic cycles and concludes with an off-topic joke.

1. Relating the Business Cycle to the Romance Cycle

2. “ You look good. You look verrrry good.” Relating Business Cycle To Romance Cycle 1 st date Jealousy sets in Gets engaged She goes off to college. H e uses the meeting line on unsuspecting freshmen girls You decide to get married Wedding March for women Death March for men Baby-5 months later But – he does nothing but make loud noises at one end , and has no discipline at the other end . You become a happy family One loses a job But with education a job is gained as well as a new house Must have good “meeting line” to get the first date.

3. Peak Trough Expansion Real GDP per year Peak: real GDP reaches its maximum. Recession: real GDP declines 6 months. Expansion: an upturn - real GDP rises. Trough: real GDP reaches its minimum. Recession Time Peak Four Phases of the Business Cycle [Have averaged five years] Expansion One Cycle

4. Recent Business Cycles Peak July, 1981 Trough Nov., 1982 Peak July, 1990 Trough April, 1991 Peak March, 2001 Trough June, 2001 Spring, 2007 Expansion-8 years Contraction [Recession] Expansion-10 years Contraction [Recession] Expansion

5. At President Reagan’s funeral, Bill and Hillary were both seen dozing off. President Reagan, who never missed a chance for a good one-liner, raised his head from the casket and said, “ I see the Clintons are finally sleeping together.”

6. Animationeconomics.com