Each business cycle has the same basic elements of peak, recession, trough, and recovery. Furthermore:

the business cycle cannot be on an upward trend.

no two business cycles are exactly alike in cause and duration

the business cycle has a steady cycle of ten years.

the recession and recovery are of equal duration and magnitude.

Expert Solution

Second option is correct

the cause of each business cycle is different because it depends upon the different economic situation which is influenced by the economic activity and the policy making of the particular economy. The duration of each business cycle is different which depends upon the severity of the business cycle, recognition and response of the government, and the reaction of the economic agents.

Rahul Sunny answered 1 year ago

The business cycle has four phases. The peak, the recession, the trough, and the expansion. During...

The business cycle has four phases. The peak, the recession, the trough, and the expansion. During the peak phase you will see the short-term fluctuations due to changes in economic activity. If the real output declines for at least two consecutive quarters than that's when it's considered the recession phase. The lowest point is called the trough phase. The trough phase is where people feel the strain and stress of the financial burden the most. The expansion phase is where...

Explain the basic concept of the business cycle (inflation, growth, GDP, recession, depression, deflation, and recovery)....

Explain the basic concept of the business cycle (inflation, growth, GDP, recession, depression, deflation, and recovery). Discuss what is happening at each stage. Explain monetary policy and fiscal policy and explain how they are used to “flatten” the business cycle during various stages.

a peak in the business cycle

f a country is on the recovery phase of the business cycle where are they on...

f a country is on the recovery phase of the business cycle where are they on the ad as model.

What are the EMS elements of the Denning Cycle? Describe in relative detail the basic elements...

What are the EMS elements of the Denning Cycle? Describe in relative detail the basic elements of EMS

Attempt to briefly explain the great recession according to each of the following four business cycle...

Attempt to briefly explain the great recession according to each of the following four business cycle theories: 1. New Keynesian 2. Real Business Cycle Theory 3. Monetarist 4. Austrian School Use each of the four model perspectives to answer the question: how did this all happen? In your view, was an appropriate Fiscal and Monetary Policy Response followed?

The U.S. economy entered the recession phase of the business cycle in December 2007. The recession...

The U.S. economy entered the recession phase of the business cycle in December 2007. The recession lasted until June 2009. discussing some of the things the central bank (Federal Reserve) and Congress did to help the economy during the Great Recession.

An upswing or recovery phase in the business cycle is most likely to be associated with...

An upswing or recovery phase in the business cycle is most likely to be associated with lower employment and lower prices lower employment and higher prices higher employment and lower prices higher employment and higher prices Which of the following is used by the Federal Reserve to reduce the money supply? Increasing the prime rate Increasing the discount rate Increasing taxes Decreasing government expenditures The gross domestic product (GDP) may provide an inaccurate measurement of the productive activity within a...

Label the phases of a business cycle and explain the following terms: a. peak &

Label the phases of a business cycle and explain the following terms: a. peak b. recession c. trough d. recovery e. growth or “secular” trend

ifthe us is in the expansion phase of the business cycle, recoveringfrom a recession,...

if the us is in the expansion phase of the business cycle, recovering from a recession, which of the following variables is increasing?a. real gdpb.aggregate real incomec. cyclical unemploymentd. the natural rate of unemploymente. both a and b

Question