10 Business Cycles - Agenda What is a Business Cycle?...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 11-1 Business Cycles 11-2 Agenda • What is a Business Cycle? • Business Cycle Facts. 11-3 What Is a Business Cycle? • Business cycles are the short-run fluctuations in aggregate economic activity around its long-run growth path. 11-4 What Is a Business Cycle? Time Y
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 11-5 What Is a Business Cycle? Components of a Business Cycle: ¾ Peak, ¾ Contraction or Recession, ¾ Trough, and ¾ Recovery and Expansion. 11-6 What Is a Business Cycle? Peak: ¾ The maximum level that aggregate economic activity reaches. Can only be determined after the fact. Generally, Y > Y n . 11-7 What Is a Business Cycle? Contractions, Recessions, or Hard Landing: ¾ Popular definition: 2 or more consecutive quarters of declining real GDP. ¾ Official definition: A period of significant decline in total output, income, employment, and trade, usually lasting from 6 months to a year, and marked by widespread contractions in many sectors of the economy. 11-8 What Is a Business Cycle? Growth Recession or Soft Landing: ¾ Official definition: A recurring period of slow growth in total output, income, employment, and trade, usually lasting a year or more. ¾ Actual growth rate is less than natural growth rate, resulting in a rising unemployment rate.
Background image of page 2
3 11-9 What Is a Business Cycle? Depression: ¾ A recession that is major in both scale and duration. 11-10 What Is a Business Cycle? Trough: ¾ The minimum level that aggregate economic activity reaches. Can only be determined after the fact. Generally Y < Y n . 11-11 What Is a Business Cycle? Expansion: ¾ Official definition: A period of significant increase in total output, income, employment, and trade, usually lasting 6 months or more, and marked by widespread expansion in many sectors of the economy.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

10 Business Cycles - Agenda What is a Business Cycle?...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online