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What is the business cycle:
In layman terms, business cycle can be defined as the irregular ups and downs on a periodic basis in the business or economic activity. For example, the ongoing recession in the US and slowdown in the global economy is one of such ups/downs of the business cycle. Such ups and downs are largely measured by economic indicators such as real GDP and host of other macroeconomic variables.
A business cycle is difficult to predict as it is not a repeatitive or regular phenomenon. Its timing is uncertain. It is precisely the reason why it is so difficult to predict that how long the current recession will last in United States.
A business cycle is identified as a sequence of four phases:
Contraction (A slowdown in the pace of economic activity)
Trough (The lower turning ...
Analysis of the Business Cycle. What is the Business Cycle and what factors causes the changes in the Business Cycle?
I'm currently studying recessions and given the fact that the US has not experienced a recession since 2001, Do you think another recession is on the horizon? Please explain your reasons why a recession might occur? If your feeling is that a recession might not occur, please explain.
Also, I'm sort of confused on what major trends in the economy will have the biggest impact on the business cycles?View Full Posting Details