Read each of the following headlines and place the proper letter next themthat correspond with the business cycle.

E = Expansionary P = Peak C = Contractionary T = Trough

1. ________The priceof breadhas increased5% overthe pastthree months.

2. ________ Interest rates at a low of 2% cause consumers to take out loans andbuy homes.

3. ________The sale ofdurable goods is down forthe 5th consecutive month.

4. ________ Due to factory closures unemployment has risen toa five year highof 10%

5. ________Due to increased consumer spending,the FederalReserve raisesinterest rates to slow the economy down.

6. ________The DOW Jonesindustrial average reaches an all-time high.

7. ________GDP declinesfor four consecutivemonths, causing theFederal Reserve to lower interest rates.

8. ________The unemployment rate isat 3.4%, anew 15 year low