Explore BrainMass
Share

seasonal economic factors

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

In a 4 to 5-page paper focus on the following questions.

1. The US is currently recovering from its worst recession in over 25 years. Using the resource provided in this and earlier modules of the course explain what factors or activities you think helped cause this economic situation. Explain your answer.

2. Economists classify macro-economic indicators as leading, lagging, or coincident. Define each classification and give two examples of each relating the recession that began in 2007 and the recovery that is now under way.

3. Differentiate between seasonal economic factors and cyclical economic factors.

4. In the past some economists stated that the business cycles can be eliminated. Do you agree it is possible for the United States economy to never have a business cycles?

5. Briefly explain what you would have proposed, as President of the United States, to end the 2007-2009 recession. A very large book could be written on this topic so please keep your answer to 2 paragraphs.

© BrainMass Inc. brainmass.com December 20, 2018, 5:18 am ad1c9bdddf
https://brainmass.com/economics/economic-growth/seasonal-economic-factors-323227

Solution Preview

In a 4 to 5-page paper focus on the following questions.

1. The US is currently recovering from its worst recession in over 25 years. Using the resource provided in this and earlier modules of the course explain what factors or activities you think helped cause this economic situation. Explain your answer. There are several factors or activates that are attributed to the recent recession. One of the activity that is believed to have triggered the recession is the Fed policy of injecting large amounts of money supply during 2007. Even though the interest rates were down the prices of goods and commodities continued to increase. The effect of injecting money was that it was easy to borrow money and indiscriminate lending by investment banking led to toxic debts. Further, a steep drop in spending because of job losses and apprehensions of job losses leading to drop in spending causes recession; In this particular case the bursting of the financial asset price bubble is said to be a major cause of recession. It is also believed that the banks lent indiscriminately and when the prices of their mortgages began to fall they were not able to recover their investments leading to a financial crisis. Further, because of globalization and the availability of cheap products, there was an element of overproduction that was responsible for the recession. One of the industries that is hauled up for large scale unemployment is the US Automobile industry. Large scale unemployment triggered off under-consumption leading to recession. Changes in exports and imports also are responsible for the recession. This is because of large scale outsourcing of jobs and import of cheap goods because of lifting of trade restrictions.
2. Economists classify macro-economic indicators as leading, lagging, or coincident. Define each classification and give two examples of each relating the recession that began in 2007 and the recovery that is now under way.
There are some indicators that effect early warnings of economic recession. These indicators signal the manner in which the economy will move in future. ...

Solution Summary

seasonal economic factors are discussed in great detail in this solution.

$2.19