Business Cycle and Growth – Flashcards
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Who first identified cyclical patterns in the economy and created what as often referred to as "The Business Cycle".?
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Clemente Juglar
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Describe the growth part of the business cycle.
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can be called expansion or recovery; occurs when persistent increases in the key, measurements of aggregate economic activities are present
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True or False: The birth rate is an indicator of the business cycle?
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False
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Describe the term Productivity.
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Measurement of physical output for each unit of input used, usually referring to labor hours.
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List each part of the business cycle.
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Growth, Peak, Recession, Trough, Growth
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List the parts of the virtuous cycle.
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Sales increase, Production increases, employment increases, income increases
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True or False: out of date products is one of the business cycle indicators?
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False
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What is the lowest level of Recession?
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The Trough
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True or False: a brand new product can be the cause of a trough?
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False
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True or False: A recession causes a decline in the tax rate?
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False
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- Period in which business activity has reached a maximum
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Peak
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- representation concerning the pattern of expansion and contraction in the economy; consisting of the growth, peak, recessio, and trough phases
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Business Cycle
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increase in the key measurements of aggregate economic activities such as employment, sales and income resulting in a rise in productivity; also known as expansion or recovery
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Growth
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two consecutive quarterly declines in gross cosmetic product; also known as contraction
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Recession
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sum or whole amount of something
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Aggregate
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implied cost of using a resource to produce a product which is equal to the income which could be received if the same resource was used to produce another product
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opportunity cost
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distribution of a share of the company's earnings to its shareholder
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Dividends
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total market value for all goods and services produced within the borders of a country during a specific time period
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Gross Domestic Product
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measurements of physical output for each unit of input used; usually referring to labor hours
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Productivity
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lowest level experienced during a recession; accounts for the least amount of output and employment
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Trough
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Growth may also be called...?
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expansion/recovery
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Horizontal growth is...?
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A strategy which broadens a company by opening more locations
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Vertical growth is...?
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A strategy which looks to expand on different points in the supply chain
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What causes a Trough?
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Product is severely outdated, need or want for the product is at an all time low, product has not changed over time
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Aggregate economic activities are measured in terms of...?
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employment, income, sales, productivity
