Explain how aggregate market analysis can be important in analyzing industries in relation to the business cycle.

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter13: Measuring The Economy's Performance
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Explain how aggregate market analysis can be important in analyzing industries in relation to the business cycle.
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An examination of macroeconomic events, including unemployment, inflation, business cycles, and adjustment strategies, utilizing the total market communication between aggregate demand, long-run aggregate supply, short-run aggregate supply. Like most economic investigation, total market examination utilizes relative statics, the procedure of contrasting the equilibrium after a shock and the balance before a shock.  Aggregate market analysis is the essential strategy for macroeconomic examination. Like most types of financial investigation, it consolidates two restricting powers. The two restricting powers in the total market take their motivation from the standard market investigation - aggregate supply and aggregate demand. Both are relations between the real production and general price level.

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