Business Cycles

Business Cycles - Maria Vega David Santamaria Nicole Perez...

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Maria Vega David Santamaria Nicole Perez Joaquin Castillo  Review Questions 1. Draw a diagram showing the phases and turning points of a business cycle. Using the diagram, illustrate the  concepts of recurrence and persistence.  The fluctuations in aggregate economic activity that constitute business cycles are recurrent, having been observed again  and again in industrialized market economies. However, they aren’t periodic, in that they don’t occur at regular or  predictable intervals. Business cycle fluctuations also are persistent, which means that once a recession or expansion  begins, it usually lasts for a while. 2.What is comovement? How is comovement related to the business cycle facts presented in this chapter? Many economic variables shift simultaneously in a predictable way over the business cycle, this is called Comovement.  The business cycle shows  comovement among all the text variables that are either procyclical this means that they move 
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This note was uploaded on 06/24/2011 for the course ECO 3202 taught by Professor Telier during the Spring '08 term at FIU.

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Business Cycles - Maria Vega David Santamaria Nicole Perez...

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