In: Economics
Business cycles are pervasive in all macroeconomics variables. Does the relative duration of expansions and recessions help explain the fact that long term economic growth has been positive.
. Business cycles are pervasive in all macroeconomic variables;
it means that the existence of a Business Cycle is applicable in
all types of macroeconomic variables in the economy.
Business cycle means the circle of ups and downs in the business
and the various conditions which affect the business in the
organisation.
In this case the word pervasive means applicable everywhere and it
is true that business cycle is applicable everywhere in the
macroeconomic variables whether it is a matter of national income
or it is a matter of determination of income and employment and the
matter of government budget and the Money and banking.
The relative duration of expansions and receptions help in the
existence of business cycles because the expansion in the economy
means the growth of all the sectors in the economy and recession is
a situation where all the activities basically productive
activities are slowed down up to a particular down point.
The long-term economic growth has been positive if there is
systematic economic planning in the economy and falls the
macroeconomic variables or under a productive situation.
The long-term economic growth is a symbol of continuing working on
the concept of efficiency in all the sectors.