Business cycle = more or less regular fluctuation of expenditure and take in relation to production capacity.
Expenditure & production outdo production capacity positive output gap/overexpenditure mellowed GDP harvest-festival lay out.
Low expenditure & production negative output gap/underexpenditure low GDP growth rate.
* Kondratieff cycle: foresightedest duration, caused by major breakthroughs in technology.
operation of youthful technology stimulates investments, productivity and economic growth so that an upward movement in the cycle is initiated. When main possibilities of new technology have been exploited, economic growth drops back to trim down level.
Minor importance for daily business in industry, because of its long duration.
* Kitchin: shortest cycle, caused by stock investments.
Investments adjusted to sales expectations: low sales low stock lower expenditure and production. Increase in sales increasing stock higher level of economic activity.
* Juglar: similar logic as Kitchin, but then related to investments in fixed assets instead of stock.
Trend line: shows rear in production capacity.
Phases of a business cycle:
* Upturn manikin = increasing growth in expenditure, which causes production to increase.
This is overly called the sum cycle; quantity qualifys, but prices dont change yet.
* Economic boom = capacity usage increased to such an extent that production processes cant keep up. take away exceeds production capacity, which enables prices to rise. Price cycle; end products, but also raw materials and wage prices rise.
* Downturn phase = expenditure decreases, causation inflation rate, production, employment rate and profitability to drop.
* Economic time out (depression) = decreased or even negative economic growth. During recession, conditions for recuperation evolve automatically; companies have to replace machines, interest rate drops because of decreasing inflation and decreased demand...If you want to get a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment