ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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efficient and do not represent lost output
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driven by technology shocks.
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occur when markets clear.
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all of the above.
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Detailed explanation-1: -A business cycle involves periods of economic expansion, recession, trough and recovery. The duration of such stages may vary from case to case. The real business cycle theory makes the fundamental assumption that an economy witnesses all these phases of business cycle due to technology shocks.
Detailed explanation-2: -In general, the business cycle consists of four distinct phases: expansion; peak; contraction; and trough.
Detailed explanation-3: -Key Takeaways The business cycle goes through four major phases: expansion, peak, contraction, and trough. All economies go through this cycle, though the length and intensity of each phase varies.
Detailed explanation-4: -The business cycle model shows the fluctuations in a nation’s aggregate output and employment over time. The model shows the four phases an economy experiences over the long-run: expansion, peak, recession, and trough.
Detailed explanation-5: -The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline.