The Business Cycle
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- Опубликовано: 10 сен 2024
- The business cycle model is one often referred to in the media, which likes to use terms like "boom' and 'bust'. It is a model that can communicate several important pieces of information about a nation's economy. Basically, the business cycles is a graph which shows the level of real GDP over time. The vertical axis shows the level of GDP, and horizontal axis time.
A typical nation's business cycle will most likely look like a wave, showing how GDP rises and falls over time. Assuming the country is achieving economic growth over the long-run, business cycle's 'line of best fit' or 'trend line' will slop upwards, indicating that over the span of years or decades, a nation's economy will produce more output. But over shorter periods of time, output may fluctuate, as the economy experiences those 'booms and busts' the media are so fond of.
There are four fundamental phases in any nation's business cycle:
1) Expansion: Also known as the recovery phase, when the nation's output is rising at a rate faster than the long-run trend.
2) Peak: This is the end of a period of expansion, when output begins to decline
3) Contraction: Also known as the recession phase, when the nation's output is falling over time.
4)Trough: This is the end of a period of recession, when output begins to recover (the economy enters an expansion phase again).
This video lesson will explore the four phases of a nation's business cycles and explain how the goal of macroeconomic policies is to 'smooth out' the fluctuations in the business cycle, and thereby reduce the amount of uncertainty faced by a nation's households and firms regarding the future level of economic activity.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.c...
imagine waiting til last minute to finish mrs. monosso’s hw... cant be me bro
I knew I was going to find somebody here.
@@rogerchan3374 At least you're not wasting your reverse mini day for this
All your videos are great, and it's easy to understand
Thanks mate!
thank you!
this was easier to digest.
to all them basis students, YO!
HI PARI JFB
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Sup m8
hey guys
great illustration thanks!
Thanks for this!
Very well done, thanks for the help.
Thank you!
Mindblown. Thank you!
Very well defined! Subscribed!
Could you talk about inventory to sales , housing sector behaviour, unemployment in each phase ?? With reasons please
how do we tell if a country is in expansion, peak or recession?
Thank youuu
Thank You Very Much. It Was really very nice and use full information. Appreciate the way it has been explained.
Ok sir g
Nice video
Thank u sir .... Easily understood ☺️
nyc
CMON EVERYONE! LETS DO THIS! LIKE MEN WE CHARGE
Sir, Raises hand in class* Please slow down I am trying to take notes !
to bad you cant press pause or anything
Don't get crafty, even when you do press pause he rattles off things so fast you miss them and wind up pulling it back and re-playing dozens of times.
Thanks to you
AP MACRO
UDONNA
@@devinhemmans7524 Yo Devin what's good?
@@udonnauchegbu2018 not much just learning the business cycle lol, wbu?
@@devinhemmans7524 Yeah, did that for MACRO. Now I'm taking GOV.
@@udonnauchegbu2018 ayy that’s sick
I hope this is not on that stupid exam tomorrow.
Anyone here in 2018?
I sure am
#HernandezMacroGang
had to watch this in eco many times I hated it
notification squad!! xx
eyeb