We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

The business cycle - Research Paper Example

Comments (0) Cite this document
Summary
Economic growth is actually not a steady phenomenon as it is characterised by a period of fluctuations. The business cycles are different from other…
Download full paper
GRAB THE BEST PAPER
The business cycle
Read TextPreview

Extract of sample
The business cycle

Download file to see previous pages... It can thus be said that if the economy is at a high rate of unemployment the fiscal as well as the monetary policy of the economy will react to adjust the rate of unemployment .According to Slutsky the stochastic shocks can be viewed as the sole reason for creating business cycles. But the spectral analysis has confirmed that business cycle exists at a level of statistical significance which is acceptable. Apart from the Keynesian view there are many other schools of economy that explains the business cycle. However in the recent times the economic theories follow the trend of economic fluctuations rather than business cycle. As per the changes in the direction of the economic activities the business cycles are dated. As long as the economy is at the full level of employment there occurs no fluctuation. However whenever the economy responds to changes in any of the economic variables the business cycle starts. One of the possible causes of a boom and a recession in an economy is the monetary policy. Such a description for the cause of business cycle goes back to the Keynesian and new Keynesian views which states that nominal rigidities are the reason behind such cycles. On the other hand the classical economics theory believes that the modern economy is too flexible and the so the changes in the spending pattern does not affect the employment and the real output (Romer.2008) These business cycles are measured by the rate of growth of the GDP. However the NBER gives little importance to the GDP as it is subjected to frequent revision .It rather relies on the employment, personal income and industrial production as the indicators. There are basically five stages in a business cycle which are 1.Expansion 2. Peak 3.Recession 4.Trough 5.Recovery.These business cycles are highly irregular and they heavily vary in terms of magnitude, frequency and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The business cycle Research Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1579225-the-business-cycle
(The Business Cycle Research Paper Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/macro-microeconomics/1579225-the-business-cycle.
“The Business Cycle Research Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1579225-the-business-cycle.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Accounting Cycle Steps
The financial accounting cycle also entails the processing of data that relate to accounting, with the aim of coming up with financial information that can be regarded as useful. The financial information considered useful in the accounting cycle includes the preparation of financial statements.
4 Pages(1000 words)Research Paper
Property Cycle
The aim of this paper is I) to review various property cycles developed over past decades, ii) various issues and factors affecting its movements, iii) significant variables governing its movement iv) Methods or frameworks commonly adopted in these studies and v) finally could a simple model predict property cycle movement
30 Pages(7500 words)Research Paper
THE ACCOUNT CYCLE
A journal has specialized format containing debit and credit column. At the end of each transaction posting in journal, a short note is also entered which describes the transaction
3 Pages(750 words)Research Paper
Accounting Cycle
The nine steps of the accounting cycle are: The accounting cycle provides accountants a clear system that allows these professionals to convert raw data into information that can be used to make
3 Pages(750 words)Research Paper
Measuring Economic Health Memo
But both are used to predict the business cycle. GDP is designed to help firms manage uncertainty (Roubini). By getting a feeling for how the whole economy is doing, business managers can decide whether or
2 Pages(500 words)Research Paper
Economics
Gross Domestic Product (GDP), Composite Coincident Indicator Index, Consumer Price Index, and so on so as to designate the business cycle and the phase of the cycle on which the US economy is lying. The NBER determines the turning points by assessing the nature of variables
1 Pages(250 words)Research Paper
Business Proposal
on and communication technology has gained much prominence and is continuously shifting consumer behavior as far as reading culture and audio-visual communication is concerned (Barclay, 2012). It is therefore important to note the increasing competition in efficient conversion
8 Pages(2000 words)Research Paper
China's business cycle and government policy in economy development
n the other hand, macroeconomics focuses on the characteristics of the economy as a whole and not individual person or sector as in the microeconomics (Salvatore,1991). This research paper explores the indicators of economy and the necessary policies put or to be put in place in
12 Pages(3000 words)Research Paper
Economic History and the Business Cycle
It gives a more accurate figure than nominal GDP as it accounts for the prices of commodities thus a better indicator to economic status of a country. Recession is a term used in economic to refer to a period
2 Pages(500 words)Research Paper
Economic Cycle
In the normal operations, modern industrial economies tend to experience swings in economic activity; sometimes ups and downs in terms of employment, spending and income among others, which influence the demand and
5 Pages(1250 words)Research Paper
Let us find you another Research Paper on topic The business cycle for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us