11 Business Cycles-2 - 1 11-1 Business Cycles 11-2 Agenda...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

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

Unformatted text preview: 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 2 11-5 What Is a Business Cycle? Compon ents of a Business Cycle: Peak, Contraction or Recession, Trough, and Recovery and Expansion. 11-6 What Is a Business Cycle? Peak: 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? Contra ctions , Recessions , or Hard Landing: Popular definition: 2 or more consecutive quarters of declining real GDP. 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 Recess ion or Soft Landing: Official definition: A recurring period of slow growth in total output, income, employment, and trade, usually lasting a year or more. Actual growth rate is less than natural growth rate, resulting in a rising unemployment rate. 3 11-9 What Is a Business Cycle? Depres sion: A recession that is major in both scale and duration. 11-10 What Is a Business Cycle? Trough : 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? Expans ion: 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....
View Full Document

This note was uploaded on 07/29/2010 for the course UGBA 100b taught by Professor Wood during the Summer '10 term at University of California, Berkeley.

Page1 / 9

11 Business Cycles-2 - 1 11-1 Business Cycles 11-2 Agenda...

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