Question

1. Based on the National Bureau of Economic Research, identify the start and end dates of a business cycle, and the start and end dates of the associated contraction and the associated expansion.  

Business Cycle____________________

Contraction____________________

Expansion ___________________

Answer 1

According to The National Bureau Business Cycle Dating Committee the dates of troughs and peaks are the ones which frame expansion and contraction in business cycle. According to the studies, a recent peak in business cycle occurred in February which ended with a record long expansion which began after the trough of June 2009. Choosing the dates of business cycle's turning point the committee follows the particular standards for assuring its continuity. The traditional role for maintaining the chronology of business cycles is in months, as BEA figures for the real GDP and GDI which are only available quarterly. Personal income less transfers payments which means less than a month which includes real GDI also. The tenure of business cycle, contraction and expansion do not last more than a few months.