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Unformatted text preview: The Peak or Boom: Recovery leads to the peak, which is a maximum value for GDP. Employment is usually full. -> Further growth may lead to inflation. -> It is difficult to maintain the economy at this level. Causation: The causes of business cycles may be classified as a. Exogenous (Originally from outside) Example: wars, inventions etc. b. Endogenous Factors: Relate to the own and internal dynamics of the economy. Example: Increase in AD. Non-Cyclical Fluctuations There are some seasonal fluctuations. These seasonal trends are normal and not cycles....
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This note was uploaded on 01/01/2012 for the course MIS 132 taught by Professor Hasandag during the Spring '11 term at Kadir Has Üniversitesi.
- Spring '11