eco - business cycle

50 %
50 %
Information about eco - business cycle

Published on August 21, 2011

Author: tasy


BUSSINESS CYCLE: BUSSINESS CYCLE INTRODUCTION…: INTRODUCTION… The term business cycle (or economic cycle ) refers to economy-wide fluctuations in production or economic activity over several months or years. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth. DEFINITION…: DEFINITION… According to Keynes, “Trade Cycle is composed of periods of good trade characterized by rising price and low unemployment percentage altering with periods of bad trade characterized by falling price and high unemployment percentage” FEATURES…: FEATURES… A Buss. Cycle exhibits a wave like movement. The gap between Prosperity & Depression. Downward movement is quicker & upward movement is slower. Buss. Cycles are International in character. Profits fluctuate more than other incomes PHASES ….: PHASES …. Prosperity Recession Depression Recovery PROSPERITY…: PROSPERITY… Ideal for Business. Demand grows & Economy expands. New products introduced & Markets are created. Rapid rise in incomes of people & people increase their consumption. Indian economy experienced prosperity in July 2004 RECESSION…: RECESSION… It is contraction phase of Buss. Cycle. Decline in country’s GDP. Decline in Prices, Demand, Investment, Employment. The Indian economy experienced two short recession in 1991 and 1996. RECOVERY…: RECOVERY… Rise in : Demand for Consumption goods Investments Employment Income Production DEPRESSION…: DEPRESSION… GDP of a country drops by at least 10% It is a result of Recession for a long period. Decline in Production, Employment, general Price level, Profits of producers & traders. Indian economy experienced depression in September 2001 CAUSES…: CAUSES… INTERNAL FACTORS :- Consumption : When consumers spending increases, business will increases production- causing them to hire more workers and purchase more materials and capital goods. Business Investment : The purchasing of capital goods increases the number of jobs in the economy. Government Activities : The government can influence the business cycle through Fiscal policy and Monetary policy. Slide 11: External factors :- Inventions and innovation : Major changes in technology can influence the business cycle. Usually technological changes move the economy in a positive direction, but this is not always so. Wars and political events : The impact of such events on the economy are very fact specific- in other words, difficult to generalize about. REMEDIAL MEASURES…: REMEDIAL MEASURES… MONETARY POLICY FISCAL POLICY DISCRETIONARY FISCAL POLICY NON DISCRETIONARY FISCAL POLICY MONETARY POLICY…: MONETARY POLICY… Monetary policy as a method to control business fluctuations. To control the expansion of money supply during a boom , it raises its bank rate ,sells securities in the open market , raises the reserves ratio. To control a recession or depression , the central bank increases the reserves of commercial banks. It reduces the bank and interest rate. FISCAL POLICY…: FISCAL POLICY… DISCRETIONARY FISCAL POLICY – It refers to a deliberate and purposeful change in the government expenditure and taxes. N ON DISCRETIONARY FISCAL POLICY – Refers to a built in tax and expenditure mechanism that increases or decreases the aggregate demand. ADVANTAGES …: ADVANTAGES … FLEXIBILITY LONG TERM PLANNING ATTENTION TO CUSTOMERS OBJECTIVITY DETAIL STUDY CONCLUSION…: CONCLUSION… Business cycles are not regular and are not all alike. Cycles have different lengths and turning points are hard to predict. All variables do not behave exactly the same over each cycle. However, there are regularities we want our models to capture.

Add a comment

Related presentations

Related pages

Economic Cycle Research Institute | Public Home | ECRI

ECRI is the leading authority on business cycles. Our state-of-the-art analytical framework is unmatched in its ability to forecast cycle turning points.
Read more

Business Services - Eco-Cycle

About Zero Waste Services, Serving the Boulder County area. Sign up for Eco-Cycle’s new Zero Waste Services program, which replaces garbage collection as ...
Read more

Business cycle - Wikipedia, the free encyclopedia

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These ...
Read more

The Business Cycle - Learn Social Studies and American History

Social Studies help for American History, Economics and AP Government. There are class notes, numerous Supreme Court case summaries and information on how ...
Read more

About Us - Eco-Cycle

Eco-Cycle’s mission is to identify, explore and demonstrate the emerging frontiers of sustainable resource management through the concepts and practices ...
Read more

Life cycle assessments of energy technologies | Research ...

The LCA Harmonization project systematically reviewed estimates of life cycle GHG emissions from electricity generation technologies published between 1970 ...
Read more

Business Cycles: The Concise Encyclopedia of Economics ...

Business cycles as we know them today were codified and analyzed by Arthur Burns and Wesley Mitchell in their 1946 book Measuring Business Cycles.
Read more

Eco-Cycle | LinkedIn

Learn about working at Eco-Cycle. Join LinkedIn today for free. See who you know at Eco-Cycle, leverage your professional network, and get hired.
Read more