Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Chemistry G10 > Business Cycle > Flashcards

Business Cycle Flashcards

You may prefer our related Brainscape-certified flashcards:
Periodic Table flashcards Chemistry 101 flashcards AP® Chemistry flashcards Organic Chemistry 101 flashcards
1
Q

Describe a Business Cycle

A

Series of upward and downward movements in the level of economic activity of a country over a period of months or years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the two periods of business cycles

A

Expansion - Economic Activity increasing - Recovery and Prosperity
Contraction - Economy is falling - Recession and Despression

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the two turning points of a business cycle

A

Trough - End of recession or depression

Peak - Upper turning point of a cycle - After a peak, economic activity decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 4 phases of a business cycle

A

Recovery
Prosperity
Recession
Depression

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How are business cycles measured

A

From Peak to Peak and Trough to Trough

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the characteristics of a Recession

A

Negative economic growth rate for 2 consecutive quarters
Businesses reduce output
Reduction in income
Increase in unemployment rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the characteristics of a Depression

A

A recession that has continued for a long time
Severe form of a recession
Large scale unemployment and severe shortages of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the characteristics of a Recovery

A

Economy starts to grow again
Starts slowly and speeds up over time
Gradual increase in demand and increase in output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the characteristics of a Prosperity

A

Increase in economic activity in a country
Increase in output, employment rate and wages
Standard of living improves
Official when an economy has grown for six consecutive months
Ends at a peak

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the 5 ways of measuring a business cycle

A 
The Dating System
The Gross Domestic Product
The Employment Growth Rate
The Inflation Rate
The Production Of Certain Goods And Services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the Dating System

A

Statistics recorded on a daily, weekly and monthly basis and then compiled quarterly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the GDP

A

Measure of the state of the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the employment growth rate

A

Figures compiled to show how many people are employed in the country and if there are changes in the number employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the inflation rate

A

Figures for inflation rate are compiled by the SARB and show changes in prices. Gives an indication of where we are on the business cycle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the production of certain goods and services

A

Certain figures such as numbers of new buildings or amount of gold mined and gives an indication of where we are on the business cycle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the 3 business cycle indicators

A

Leading Indicators
Lagging Indicators
Coincident Indicators

17
Q

What are Leading Indicators

A

Change direction before the economy itself changes

Used to predict what is going to happen to the economy

18
Q

What are Lagging Indicators

A

Change a few months after the economy changes
Confirm the economy has changed
Example - Unemployment Rate

19
Q

What are Coincident Indicators

A

Change at the same time as the economy
Give information about the state of the economy
Example - Company payrolls because wages and salaries increase when the economy is strong and decrease when the economy is weak

20
Q

What are the two types of reasons for business cycles

A

Exogenous and Endogenous reasons

21
Q

What are exogenous reasons

A

Causes that originate outside of the economy of a country

22
Q

What are the 5 types of exogenous reasons

A 
Natural Disasters
Political Reasons
Foreign Trade
Weather
Monetary Reasons
23
Q

What are endogenous reasons

A

Causes that originate inside of the economy

24
Q

What are the 3 types of endogenous reasons

A

Investment
Technological Change And Innovation
Savings

25
Q

What are the 6 effects of business cycles

A

Changes in aggregate supply and demand
Changes in economic growth
Changes in employment rate
Changes in price / inflation rate
Changes in the level of the rate of exchange
Effects on people who are economically vulnerable

Chemistry G10 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions