Title: Explain the effect of the business cycle on the retail environment.
Course: Small Business Marketing (12161) > Section: Exploring the Economics of Retail Operations

Explanation should include the stages of the business cycle and their characteristics:

- Expansion Phase
  - increased consumer spending
  - investment in growth
  - strong performance of premium goods and services
- Peak Phase
  - robust sales
  - inventory management challenges
- Contraction Phase
  - reduced consumer spending
  - cost-cutting measures
  - discount retailers
- Trough Phase
  - rebuilding consumer confidence
  - opportunities for innovation

Process/Skill Questions:

- How can one identify the different phases of the business cycle using real-world economic indicators such as GDP, unemployment, and inflation?
- What are the key features that can occur during the expansion phase of the business cycle?
- Why does the peak phase of the business cycle have the highest point of economic growth?
- What factors might cause an economy to move from a peak to a contraction phase?