networks Economic Instability Lesson 1 Business Cycles and Economic Instability Review Questions Directions: Read each main idea and answer the questions below. Use your textbook to supply the details that support or explain each main idea. A. Main Idea: The economy naturally goes through cycles of recession and expansion, which are caused by a number of factors. 1. Describe the two phases of business cycles and their key characteristics. 2. What are some events that cause recessions to begin? B. Main Idea: The United States has experienced many cycles of recession and recovery, including the Great Depression of the 1930s and the Great Recession of 2008-2009. 1. What was the Great Depression? e for classroom use. 2. What caused the Great Depression? 3. How did the United States recover from the Great Depression? 4. What were the effects of the Great Recession on people in the United States