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Unit 1 - Business Cycles

Business Cycles
--Fluctuation in economic activity that an economy experiences over a period of time
-1 cycle from trough to trough
-Avrg. Cycle is 5-7 yrs
-Recession lasts ~ 14 months
-Peaks & Troughs are meaningless b/c we never know we are in one until its over
-Trough: end of a recession
-if recession loses >10% of real GDP, then it is a depression

Expansion - period of high (real) GDP and high employment
Peak - highest point just before the unemployment rate rises
Contraction - (Recession) real GDP decreases in a contraction period ad unemployment rises
Trough -  our lowest point (often called depression)

 

Comments

  1. Jaelyn S.February 6, 2018 at 7:33 AM

    This post was very informative bur I would just like to add the definition Shortage-Temporary quantity demanded is greater than quantity supplied.

    ReplyDelete

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