ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Peak
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Contractionary
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Trough
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Growth
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Detailed explanation-1: -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-2: -“Present value calculations of future earnings for stocks are tied to assumptions about interest rates or inflation. If investors anticipate higher rates in the future, it reduces the present value of future earnings for stocks. When this occurs, stock prices tend to face more pressure.”
Detailed explanation-3: -The business cycle is caused by the forces of supply and demand-the movement of the gross domestic product GDP-the availability of capital, and expectations about the future. This cycle is generally separated into four distinct segments: expansion, peak, contraction, and trough.
Detailed explanation-4: -1] Changes in Demand. Browse more Topics under Business Cycles. 2] Fluctuations in Investments. 3] Macroeconomic Policies. 4] Supply of Money. 1] Wars. 2] Technology Shocks. 3] Natural Factors. More items