2.7 business cycles

Question 1

the business cycle

Answer 1

mix of economic expansion, contraction, and transitions
occur when there are changes in A output and employment in response to changes in AS or AD

Question 2

expansion

Answer 2

phase of inc employment, economic growth, and pressure for price inc

Question 3

peak

Answer 3

max growth stage of the economy

Question 4

contractoin

Answer 4

characterized by inc unemployment dec ecnomic activity and declinging output

Question 5

trough

Answer 5

lowest poihnt in economy activity

Question 6

factors that influence business cycle

Answer 6

monetary policies: ineffective expansion or contraction of the money supply can cause macroeconomic instability
natural events: can cause hardships for large regions
polotical insecurityL bus confidence and investment can decline during certain factors
trade barriers: a reducction in trade barriers tend to promote overall ecoomic growth
gov spendingL inc stimulates economy