ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUSINESS CYCLES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is NOT an indicator of the business cycle? A. B. C. D.
A
Birth rate
B
Labor costs and productivity
C
Labor force
D
Wages
Explanation: 

Detailed explanation-1: -The option is true as stagflation is not a part of the business cycle.

Detailed explanation-2: -In the business sector, leading indicators reflect shifts in the business cycle or the onset of a business cycle. Examples of leading indicators include consumer expectations, average weekly work hours in manufacturing, factory orders for goods, and stock prices.

Detailed explanation-3: -An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough. The average economic cycle in the U.S. has lasted roughly five and a half years since 1950, although these cycles can vary in length.

Detailed explanation-4: -The economy’s movement through these alternating periods of growth and contraction is known as the business cycle. The business cycle has four phases: expansion, peak, contraction, and trough, as shown in Figure 1.

There is 1 question to complete.