Business Cycle Flashcards
1
Q
Sticky Prices
A
Inflexible Prices
2
Q
Business Cycle
A
Peaks, Recessions, Troughs, Expansions
3
Q
Peak
A
beginning of a recession, full employment and near capacity output. prices likely to rise
4
Q
Recession
A
period of slow economic growth. decline in total output, income, employment, and trade lasting six months or more
5
Q
Troughs
A
End of a recession, low point of economic activity prior to recovery
6
Q
Expansion
A
Economy is growing at a rate significantly above normal,. Output and employment are expanding towards full employment
7
Q
Causation of Business Cycle theories
A
- Major Innovations 2. Changes in Productivity 3. Monetary 4. Political Events 5. Financial Stability
