Business Cycle With Diagram
39 1 shows that a business cycle like a year has its own seasons.
Business cycle with diagram. The template of 4 slides remains entirely revisable. Stages of the business cycle. It is to be noted at the outset that peaks and troughs make the turning points of the cycle while recession and expansion are the major phases.
At some point gnp reaches its upper turning point and the downswing of the cycle begins. Ignores the accelerator s role to describe business cycles. A boom in the upswing and a recession in the down swing.
Phases of a business cycle. The first slide consists of a 5 part business cycle in a circular yet tricky continue reading business cycle diagram. Diagram of four phases of business cycle.
However a business cycle can be explained property with the help of multiplier acceleration interaction. After the peak point is reached there is a declining phase of. The diagram shows the different stages of the business cycle.
These fluctuations typically involve shifts over time between periods of relatively rapid economic growth expansions or booms and. The upswing or expansion phase exhibits a more rapid growth of gnp than the long run trend growth rate. So that you can draft it according to your need.
On the other hand the line of cycle shows the business cycles that move up and down the steady growth line. The different phases of a business cycle as shown in figure 2 are explained below. The business cycle moves about the line.