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What is the definition of a business cycle?
The business cycle relates to repetitive fluctuations of expansion and recession in an economy. Over the longer term an economy would normally experience a positive growth in output. Therefore, the business cycle can be defined as the ‘short-term fluctuation of total output around its trend path’ (Begg et al, 1997, 518).
What are the variables in the business cycle?
Besides, all of variables such as Real Gross Domestic Product (RGDP), inflation and unemployment rate and their behaviour in the business cycle will be also demonstrated in the second part. The final part of this essay will analyse and compare the situation of Australian economy and USA
How long does the business cycle last in the UK?
In the UK, the business cycle tends to last between 6 – 10 years, although this cannot be guaranteed. In fact, as the cycles occur at different time intervals, some economists have disputed the existence of ‘cycles’ and are more comfortable referring to the up and down movements in the economy as ‘fluctuations’ instead.
How to write an essay about the business cycle?
ASSIGNMENT 1 Introduction In macroeconomics, business cycle played an important role to show what a national economy is going; therefore, this essay will define what business cycle is and its characteristics.
Last Update: Oct 2021
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Barin
21.10.2021 03:52
This theory provides that the economy is driven by need and that compression in demand creates a recession and the subsequent cuts in spending.
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