Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 7, Problem 10E
To determine
Whether there is a regular pattern to the business cycle.
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Without using real data, draw a graph showing how real GDP changes over a business cycle. Label and briefly describe each of the phases of a business cycle on your graph (recession, trough, expansion, peak).
Find an illustration or graph that identifies the different phases of the business cycle. Thereafter discuss each phase below your illustration or graph. Interpret it.
Plot these data points, and identify the four phases of the business cycle. Give a theory that may explain the cause of the observed business cycle. What are some of the consequences of a prolonged decline in real GDP? Is the decline in real GDP from $1,000 billion to $500 billion a recession?
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- During a certain period of time, the economic growth of a country is reflected through some phases of the economic cycle. What is a business cycle? Explain. What are the four phases of the business cycle? Explain each one. Do the four phases have a certain order? Explain your answer. Does an economic cycle have a specific period of months or years? Explain your answer.arrow_forwardDraw the business cycle diagram correctly labeling the axes, expansion, peak, contraction, and trough.arrow_forwardLabel the graph in Figure 1 with all of the parts of the business cycle.arrow_forward
- Explain the phases of the business cycle in general and identify at least one year when Egypt was experiencing each phase.arrow_forwardWhat is a business cycle? Explain the four elements of a business cycle and what happens to economic activities and conditions during each element. In your explanation, be sure to touch on the concept of a recession. Use a graph to show the different elements.arrow_forwardThe graph shows the annual GDP growth rate of the United States economy since the first quarter of 1990. According to what was discussed in the course on the phases of the business cycle, how can you represent the concept in this graph? Explain. Without necessarily having numerical data, what level (high or low) of unemployment could have been recorded in some of the periods presented in the graph? Explain your answer indicating why. Without necessarily having numerical data, what level (high or low) of inflation could have been recorded in some of the periods presented in the graph? Explain your answer indicating why. How do you correlate your answers in the previous questions with the phases of economic cycles and their short- and long-term effects? Explain your answer.arrow_forward
- Explain the value of seasonal indices in forecasting. How are seasonal patterns different from cyclical patterns?arrow_forwardWhat happens after a peak in a business cycle? Discuss your answer. *arrow_forwardDifferentiate the four phases of business cycle. Explain each phase with the help of diagram.arrow_forward
- What are business cycles? What are their consequences?arrow_forwardWhat are the names of the following events in a business cycle? a) the high point of economic activity b) the low point of economic activity c) the period between the high point of economic activity and the following low point. d) The period between the low point of economic activity and the following high point.arrow_forward
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