Theory of Business Cycle (HINDI)
Business cycles can be characterized as fluctuations in economic activity in the form of actual real output fluctuations around potential output of the economy (i.e. the trend). The economic activity is either accelerating or decelerating. The economic cycle means alternating periods of growth and decline in real output. In this case, there is changing in employment, investments, profits and other variables. In practice, the focus is on the fluctuation of the real product.
The business cycle may have a growth trend, in that case we are talking about an expansion, or fall trend, when talking about a contraction. Situation when the output does not decrease, or grow, and therefore has a zero change, is called stagnation.
The expansion phase is terminated by a peak of business cycle and contraction by a through. These points are called the “turning points”.
If the economy is in a phase of expansion, but the actual real output is below the potential output, we call this situation as a recovery. If it is a phase of expansion, where the actual real output is greater than potential product, we are talking about a boom.
Видео Theory of Business Cycle (HINDI) канала E.Z. Classes
The business cycle may have a growth trend, in that case we are talking about an expansion, or fall trend, when talking about a contraction. Situation when the output does not decrease, or grow, and therefore has a zero change, is called stagnation.
The expansion phase is terminated by a peak of business cycle and contraction by a through. These points are called the “turning points”.
If the economy is in a phase of expansion, but the actual real output is below the potential output, we call this situation as a recovery. If it is a phase of expansion, where the actual real output is greater than potential product, we are talking about a boom.
Видео Theory of Business Cycle (HINDI) канала E.Z. Classes
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