What is meant by the "business cycle"? What are the four stages of this cycle? What is the Trend? Show a diagram.

Based on the stages of a business cycle, what is meant by "pro-cyclical"? What is meant by "counter-cyclical"?

Suppose that a business cycle trend line begins with real GDP at $5255 and ends with real GDP at $7357 over 4 years. What is the average annual real rate of growth? Show your calculations.

Suppose that a business cycle trend line begins with real GDP at $4500 and ends with real GDP at $5400 over 10 years. What is the average annual real rate of growth? Show your calculations.

Suppose that a business cycle trend line begins with real GDP at $6650 and ends with real GDP at $9400 over 5 years. What is the average annual real rate of growth? Show your calculations.

Discuss Leading, Lagging, and Coincident indicators.

Solutions

Expert Solution

Business cycle shows economic fluctuations in production, trade and general economic activities. It has 4 stages trough, peak, expansion and contraction which are explained below:

Trough : The lowest turning point of business cycle is known as trough.

Peak : The highest quantity reached at a point of time is known as peak.

Expansion : A period of economic growth is known as expansion.

Contraction : A period of negative growth is called contraction.

Currently, we are on the phase of expansion where there is growth in the economic output during years.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

what are the various stages of a business cycle

- What are the four stages of the product life cycle? - What are the six...

- What are the four stages of the product life cycle? - What are the six stages in the selling process? What role does each stage play?

What is the business cycle (definition)? what are the four business cycle theories? Highlight four important...

What is the business cycle (definition)? what are the four business cycle theories? Highlight four important points of the Real business cycle theory. Does this theory sufficiently describe why business cycles occur? Why or why not? Explain your answer.

Name the four stages of the business process management cycle and summarize the activities in each....

Name the four stages of the business process management cycle and summarize the activities in each. Your response should be at least 200 words in length.

What is a business cycle? Explain it using a diagram.

Illustrate and explain using a diagram the four (4) phases of the business cycle

Illustrate and explain using a diagram the four (4) phases of the business cycle;Explain how these phases come about (i.e. what influences cause the turning points to occur);Explain the different types of unemployment and how they come into existence;Illustrate and explain using a diagram how the money-market functions.

which two of the four stages business cycle do you belive the US is currently in?

This diagram depicts the HIV life cycle. Identify the main stages of the cycle by placing the captions in the correct location the diagram.

This diagram depicts the HIV life cycle. Identify the main stages of the cycle by placing the captions in the correct location the diagram. You will not use all of the captions.

What is the purpose of the Product Life Cycle? Identify and explain the four stages of...

What is the purpose of the Product Life Cycle? Identify and explain the four stages of the product life cycle. In your response, be sure to include an indication of how sales, profits, product, price, promotion and place change with each stage. Explain what marketers can do to extend the length of the product life cycle? Provide examples to showcase your ideas.

What are the four phases of the business cycle? Which phase of the business cycle would...

What are the four phases of the business cycle? Which phase of the business cycle would be the best time to purchase a large ticket item? How do you calculate the labor force participation rate? Who is accounted for in our country’s labor force? How is our country’s unemployment rate calculated? In one to two sentences, please define the term, “full employment?” In one to two sentences, what is a discouraged worker? What are the four types of unemployment? Which...

Subjects