Clark_Jan_Macroeconomics_Seminar_Unit 4

Clark_Jan_Macroeconomics_Seminar_Unit 4 - Jan Clark...

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Jan Clark BU-204-01 Macroeconomics 01/14/2012
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In discussing the business cycle model, you must first look at what it is. There are several different versions that I found. The one that seems to explain it the best is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables (Krugman, Wells, 2009). The point in time at which the economy shifts from expansion to recession is known as a business-cycle peak; the point at which the economy shifts from recession to expansion is known as a business-cycle trough (Krugman, Wells, 2009). The business cycle describes the phases of growth and decline in an economy. The goal of economic policy is to keep the economy in a healthy growth rate by being fast enough to create jobs for everyone who wants one, but slow enough to avoid inflation. There seems to be four different stages for a business cycle. Contraction – when the economy starts slowing down, as stated above a
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This note was uploaded on 02/01/2012 for the course MACROECONO BU204 taught by Professor Bergan during the Spring '09 term at Kaplan University.

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Clark_Jan_Macroeconomics_Seminar_Unit 4 - Jan Clark...

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