Business Cycle Notes Economics

The first stage in the business cycle is expansion.

Business cycle notes economics. In a business cycle there are wave like fluctuations in aggregate employment income output and price level. Definition of business cycle. October 15 2013 chapter 8.

Long waves business cycles or trade cycles are of 50 to 60 years duration. During this phase there is slight improvement in economic activity to start with. Meaning of business cycles.

The answer series 1. No business in any economy has a straight trajectory. Business cycles are comprised of concerted cyclical upswings and downswings in the broad measures of economic activity output employment income and sales.

Below is a more detailed description of each stage in the business cycle. Economics grade 12 session 2 learner notes page 9 of 15 topic 1. The entrepreneurs begin to feel that the economic situation was not so bad as it was in the preceding stage.

And fluctuations in economic activity mean fluctuations in macroeconomic variables. Discuss the causes of business cycles with reference to the exogenous and endogenous factors. The business cycle introduction in this unit you learn about the factors which influence the slope and position of the demand and supply curves you are also exposed to the main economic theories about the demand and supply curves when the economy is at equilibrium everything is not always ok.

The upswing period of the long range cycle can contain several minor and even major cycles. It refers to the phenomenon of cyclical booms and depressions. Normally a business cycle is caused and conditioned by a number of factors both exogenous and endogenous.