Business Cycle

THEORIES OF BUSINESS CYCLE Business Cycle : SPOTS OF THE SUN WHAT COMES UP essential COME DOWN 1.EXOGENOUS THEORIES FORCES OF WARS POLITICAL DEVELOPMENT NATURAL DISASTERS MAJOR INNOVATIONS TYPHOONS FLOODS DROUGHT CIVIL WAR GREEDINESS 2.ENDOGENOUS THEORIES ACCELERATORS MULTIPLIERS INNOVATIONS pecuniary POLICIES PHASES OF BUSINESS CYCLE Prosperity - Peak of business cycle. - Full exercise - subject field output is at large capacity - Price level ladder to increase - Productive resources are at in effect(p) capacity Recession - two production and employment falls - Decrease of price Depression- Both production and employment fall. - Valley of business cycle - No private businessman is impulsive to invest Recovery - Both production and employment rise towards full employment.

- Price level may increase EFFECTS OF BUSINESS CYCLE ? For those who fuck off capital goods(trucks, building, farm machines) -suffer from very low or banish sales - employees have to be laid off ? For industries which produce consumer durables(cars, refrigerators, gas ranges, photographic plate appliances) -production and employment fall UNEMPLOYMENT Factors that contribute to unemployment: Changes in technology Renovations Business Cycles Seasons Disguised Unemployment- separates input does not contribute to overall output. Types of Unemployment: 1) frictional Unemployment - Interruptions in production Renovations Workers looking for other jobs 2) Structural Unemployment - Changes in technology 3) rotary Unemployment - Fall of business activities/decrease in demand 4) Seasonal Unemployment - die away periods/season changes EFFECTS OF UNEMPLOYMENT ? Less goods and services are produce ? bang-up loss of income ? Decline in topic income and gross national product ? Loss of self-confidence or to more serious crimes practiced EMPLOYMENT DEFINED When there is an available job for every soulfulness who is willing and able to work,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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