PPT-Understanding the Business Cycle

Combining Aggregate Supply and Demand with LRAS Inflationary Gaps Recessionary Gaps UNDERSTANDING THE BUSINESS CYCLE Where AD and AS meet is considered to be Equilibrium GDP There are 3 possible Macroeconomic Equilibriums . NON-MONETARY THORIES OF BUSINESS CYCLE. MONETARY THORIES OF BUSINESS CYCLE. I. SUNSPOT THEORY. This is the oldest theory of business cycle. It is associated with the name of W. Stanley . Javons. , that variations in the atmosphere of the sun. This affected the agricultural crops which in their turn influenced the level of business activity in the economy.. The term . business cycle. or . economic cycle. refers to economy-wide fluctuations in production or economic activity over several months or years, around a long-term growth trend.. peak (. boom. ). PREPARE – Correct policies/ handbooks/ contracts. Who do you need?. How do you get the best?. ATTRACT – the best people that understand and develop company ethos and growth. ENGAGE – Complete induction programme that inspires confidence in new employee and company.. 3). Unemployment. 4). Inflation. Deflation. 1). Cycle. Write down words that come to mind when you think of each of the following. There are no right or wrong answers!. 2). Gross Domestic Product (GDP). Using images to reinforce different stages of the economic cycle. A: Builders decide to delay construction of new homes. B: Reports that the number of new job vacancies is rising. C: Increasing . hours of . Denition :Anr-cycleisdenotedby(i1i2:::ir):Example :11=(1)1cycle1212=(1)1cycle1221=(12)2cycle123321=(13)2cycle123231=(123)3cycle12344312=(1423)4cycle1234535421=(13425)5cycle12345 Expansion/Recovery. Peak. Contraction/Recession. Trough. The factors that affect supply and demand also cause the fluctuations in the business cycle.. BUSINESS INVESTMENT. Businesses invest in capital goods –such as new machinery- to increase their production. *Please note: This counts as a test grade. Check List: . Step 1: . Decide to work with: . (check one) . Yourself . or Assigned partner. Partner’s Name _____________________ . Student signature. Eric Nelson. Jil Wonoski. 2017 Rapid Response Summit. Tour = Company Culture, Type Equipment, etc.. Admin Info = FEIN, . C. ompany Structure, Locations. Operations = Type Product/Service, Number Employees, Number Shifts. 1870-2009 – change and continuity. Stud. . polit. . Jeppe. Druedahl. Supervisor: Paul Sharp. Opponent: Ole . Jahn. Seminar: Topics in Economic History. Department of Economics, University of Copenhagen. . as. a . leading. . indicators. for business . demography. . Preliminary . results. Authors:. . F. . Bacchini. *, . P. . Cella**, . R. . Iannaccone. *, . C. . Viviano**. Speaker: . Caterina . The business cycle is the downward and upward fluctuations of the productivity level of the economy, along with its natural growth rate over a long period.. When businesses are increasing production, they need more employees. As a result, more people are hired, there is more money to spend, and businesses make more profits and can focus on growth.. Introduction. The business cycle is a period of . Economic Fluctuation . or Economic Change.. It is characterized by . expansion. and . contraction, . and is sometimes why people say we have a “Boom-Bust” system.. PREPARED BY. ANINDITA CHAKRAVARTY. Meaning . of Trade Cycle: . A . trade cycle refers to fluctuations in economic activities specially in employment, output and income, prices, profits etc. .. . It has been defined differently by different...