The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.
-
Upload
reynold-jones -
Category
Documents
-
view
220 -
download
0
description
Transcript of The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.
![Page 1: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/1.jpg)
The Business Cycle
Chapter 10 Economic Fluctuations,
Unemployment and Inflation
![Page 2: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/2.jpg)
Business Cycle
Defined as:– The pattern of rising real GDP followed
by falling real GDP.
![Page 3: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/3.jpg)
Business Cycle
• Pattern of the Business Cycle– The pattern is that of a period of growth,
called expansion, which hits a peak.– The growth is followed by a fall in the
economy, called a contraction.– The bottom of the fall is called the
trough.
![Page 4: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/4.jpg)
Business Cycle
• Pattern of the Business Cycle– After a period of time in the trough, the
economy resumes its growth/expansion.– Later, it hits another peak, at a higher
size of GDP.
![Page 5: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/5.jpg)
Changing Business Cycle Vocabulary
• Panic• Crash• Depression• Recession• Growth-Adjustment Phase• Jobless Recovery
![Page 6: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/6.jpg)
Indicators
• Economists use changes in a variety of activities to measure the business cycle, and to try to predict where the economy is headed.
• They include:– Leading indicators– Lagging indicators
![Page 7: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/7.jpg)
LEADING INDICATORS
• Variables that change before real output changes.
• They include:– Unemployment claims– Manufacturers’ new orders
![Page 8: The Business Cycle Chapter 10 Economic Fluctuations, Unemployment and Inflation.](https://reader036.fdocuments.in/reader036/viewer/2022082510/5a4d1b277f8b9ab059997741/html5/thumbnails/8.jpg)
LAGGING INDICATORS
• Variables that change after real output changes.
• They include:– Inventories to sales ratio– Outstanding commercial loans