The economic cycle is the short-term alternation between economic slowdowns and economic recoveries (Investopedia nd). A recession is an economic slowdown that occurs in all countries and some recessions are worse than others and GDP output and employment decline faster and faster. The Great Depression lasted from 1929 to 1933 and was a deep and prolonged downturn in the business cycle before a recovery/expansion of the business cycle occurred and GDP and employment began to increase (Krugman & Wells. 2012). The next recession lasted from 1981 to 1982 and was comparatively more modest than the first (Krugman & Wells. 2012). More recently, in 2001, an economic recession was noted, followed by the Great Termination from 2007 to 2009 (Krugman & Wells. 2012). Recession is defined as “a period of at least two consecutive quarters (one quarter equals three months) during which the total output of the economy declines” (Krugman & Wells. 2012). In the United States, the National Bureau of Economic Research (NBER) is responsible for determining when a recession begins, and the NBER examines various economic indicators such as employment and production (Krugman & Wells. 2012). Each recession in the business cycle has a negative impact on the economy, with the postponement of the recession being due to the strength of the impact on the country. Consider the two graphs in Figure 21-5 of the most recent recessions in 2001 and 2007. The 2001 recession did not last as long as the 2007 recession and did not cause as much economic hardship over the business cycle and as shown in Figure 21-5. The year 2007 saw a sharp drop in industrial production. The second chart shows a recession when the economy moves from expansion to recession or the peak of the business cycle. Then in the tank...... middle of paper .......). New York, NY: Worth. Pettinger, T. (nd). Circular flow of income. Economic aid. Retrieved from http://www.nomicshelp.org/blog/glossary/circular-flow-Income/ PIMENTEL, David (nd). PIMENTEL, David. American professor on population growth, the Earth's carrying capacity, biofuels, big money and the ignorance of politicians - BIOFUEL GENOCIDE. Retrieved from https://sites.google.com/site/biofuelgenocide/pimentel-davidThe demographic situation in the United States. (nd). World population balance sheet. Retrieved from http://www.worldpopulationbalance.org/us_population United States. (nd). Data. Retrieved from http://data.worldbank.org/country/united-statesU.S. Bureau of Labor Statistics. (nd). Employment status of the civilian noninstitutional population aged 25 and older by education level, gender, race, and Hispanic or Latino ethnicity. Retrieved from http://www.bls.gov/cps/cpsaat07.htm