ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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expansion and contraction
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day and night
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fight or flight
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war and peace
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Detailed explanation-1: -The economic cycle, also known as a business cycle, refers to fluctuations of the economy between periods of expansion (growth) and contraction (recession).
Detailed explanation-2: -Fluctuations in the economy are often called the business cycle. • A recession is a period of declining real. incomes and rising unemployment. •
Detailed explanation-3: -Every nation’s economy fluctuates between periods of expansion and contraction. These changes are caused by levels of employment, productivity, and the total demand for and supply of the nation’s goods and services. In the short-run, these changes lead to periods of expansion and recession.
Detailed explanation-4: -Short-run growth, or economic expansion, occurs when total output-that is, all the goods and services produced in an economy-increases. Such economic expansion can be measured by changes in real gross domestic product, also called real GDP. Real GDP is GDP adjusted for inflation.
Detailed explanation-5: -The Great Depression was the biggest economic contraction in U.S. history. It began in 1929, the year Herbert Hoover became president.