Variables affecting the business cycle include marketing, finances, competition and time
What factors affect the business cycle?
main factors contribute to changes in the business cycle: business decisions; interest rates; consumer expectations; and external issues When businesses increase production, they increase aggregate supply and help fuel an expansion When they decrease production, supply decreases and a contraction may result
What are the 4 phases of the business cycle quizlet?
The four phases of the business cycle are peak, recession, trough, and expansion
What is the business cycle the four critical stages?
The business cycle goes through four major phases: expansion, peak, contraction, and trough All businesses and economies go through this cycle, though the length varies
What external factors affect business cycle?
External Factors of Business Cycle Wars In war days all the available resources are utilized for the production of weapons which greatly affect the product of both capital and consumer goods Postwar Period Scientific Development Gold Discoveries Surplus, Exports and Foreign Aid Weather Population Growth Rate
What 4 factors affect the business cycles ups and downs?
Variables affecting the business cycle include marketing, finances, competition and time
What are the 5 causes of the business cycle?
Causes of the business cycle Interest rates Changes in the interest rate affect consumer spending and economic growth Changes in house prices Consumer and business confidence Multiplier effect Accelerator effect Lending/finance cycle Inventory cycle Real business cycle theories
What are the four phases of the business cycle How long do business cycles last?
The four phases of business cycles are: peak, recession, trough and expansion Business cycles usually vary a lot The table below shows the duration of several recessions in the US history From the last column of the table it is noted that the duration of business cycles are between 8 and 18 months
What are the four levels of inflation?
There are four main types of inflation, categorized by their speed They are creeping, walking, galloping, and hyperinflation There are specific types of asset inflation and also wage inflation Some experts say demand-pull and cost-push inflation are two more types, but they are causes of inflation
What are the four main categories of unemployment?
Unemployment can be classified as frictional, cyclical, structural, or institutional
How do business cycles affect the economy?
A business cycle is the periodic growth and decline of a nation’s economy, measured mainly by its GDP Governments try to manage business cycles by spending, raising or lowering taxes, and adjusting interest rates Business cycles can affect individuals in a number of ways, from job-hunting to investing
What is business cycle What are its phases?
In a business cycle, the economy goes through phases like expansion, peak economic growth, reversal, recession and depression, finally leading to a new cycle Prices tend to fall and economic indicators such as income, output and wages start to decline
What are the features of business cycle?
It is also known as the features and phases of business cycles They are expansion, peak, contraction, and trough Business cycles are an aggregate phenomenon Expansions and recessions accompany business cycles Although business cycles are recurrent, they are not periodic
What three factors affect business cycles quizlet?
Terms in this set (15) Contraction Trough Expansion Peak
What are the 5 external environmental factors that affect marketing?
The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables Marketers generally cannot control the elements of the external environment
What are the economic factors affecting business?
Top 10 Economic Factors Affecting Business #1- Interest Rate Interest Rate is a major factor affects the liquidity of cash in the economy #2 – Exchange Rate The exchange rate comes into the picture in case of export and import #3 -Tax Rate #4 – Inflation #5 – Labor #6 – Demand / Supply #7 – Wages #8 – Law and Policies
What are the 3 main indicators of the business cycle?
The Conference Board, a global business research association, identifies three main classes of business cycle indicators, based on timing: leading, lagging and coincident indicators
How can endogenous factors affect the business cycle?
Endogenous Business Factors Endogenous factors are factors found within a business model that pertains to the economy pertaining to a specific product Many businesses have natural annual business cycles where demand is higher at certain periods and lower at others Prices go up because the cyclical demand is up
What is business cycle Slideshare?
A business cycle refers to periods of expansion and contraction A peak is the high point following a period of economic expansion A trough is the low point following a period of economic decline 3 The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time
How does business cycle affect consumers?
The business cycle is crucial for businesses of all kinds because it directly affects demand for their products Boom: high levels of consumer spending, business confidence, profits and investment Prices and costs also tend to rise faster Unemployment tends to be low as growth in the economy creates new jobs
What is an exogenous factor that affects the business cycle?
Exogenous causes are factors that influence the business cycle from outside of the system, eg climate (drought and other natural disasters) and the political situation of a country
What are the four phases of the classical business cycle and how is employment typically affected during each phase?
Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough An expansion is characterized by increasing employment, economic growth, and upward pressure on prices
How does the business cycle affect the inflation rate?
Unemployment increases during business cycle recessions and decreases during business cycle expansions (recoveries) Inflation decreases during recessions and increases during expansions (recoveries)
What is the business cycle quizlet?
The business cycle is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables
What are the factors that trigger inflation?
Factors which causes Inflation (Factoring affecting Demand and Supply) Increase in Money Supply: Increase in Disposable Income: Increase in Public Expenditure: Increase in Consumer Spending: Cheap Monetary Policy: Deficit Financing: Expansion of the Private Sector: Black Money:
What are the 3 types of inflation?
Inflation is the rate at which the value of a currency is falling and, consequently, the general level of prices for goods and services is rising Inflation is sometimes classified into three types: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation
Whats causes inflation?
Inflation is a measure of the rate of rising prices of goods and services in an economy Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product