describe what happens in each of the four phases of the business cycle: expansion, peak, contraction, and trough.

1. During which phase is inflation likely to be a problem? When is deflation likely to happen? Why?
2. In 2021 and 2022, the US started to experience high rates of inflation. How did this personally affect you? Name at least two changes you made to adjust for inflation.
3. Inflation can be caused by many factors. Explain how each contributed to inflation: a) increased government spending during the COVID-19 response, b) supply chain disruption caused by the pandemic, and c) the Federal Reserve pumping more dollars into the economy. Evaluate which factor was the most important one. Why do you believe this?
4. Predict what will happen over the next 12 months in the business cycle. Why do you think this will happen?
5. 1. Good versus Bad Debt. Is there such a thing as good debt, what types of debt do you consider to be "good"? What types do you consider to be "bad"? 2. Are you considered a default risk? How would a lender evaluate you based on "the five C's" of character, capital, capacity, collateral, and conditions? How could you plan to make yourself more attractive to a lender in the future? 3. Some credit cards offer reward points or 1 percent higher cash back reward for all purchases made on the card. How would you feel about using such a card to get those rewards with the intention of paying off the balance each month? Do you have one of these cards now?