What are the 4 business cycles?
The four stages of the economic cycle are also referred to as the business cycle. These four stages are expansion, peak, contraction, and trough. During the expansion phase, the economy experiences relatively rapid growth, interest rates tend to be low, production increases, and inflationary pressures build.
What are the causes and consequences of business cycles?
The business or trade cycle relates to the volatility of economic growth, and the different periods the economy goes through (e.g. boom and bust). There are many different factors that cause the economic cycle – such as interest rates, confidence, the credit cycle and the multiplier effect.
What is business cycle What are its phases?
Business Cycle Phases Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough. The slowing ceases at the trough and at this point the economy has hit a bottom from which the next phase of expansion and contraction will emerge.
What is business cycle explain major theories of business cycle?
The monetary theory states that the business cycle is a result of changes in monetary and credit market conditions. Hawtrey, the main supporter of this theory, advocated that business cycles are the continuous phases of inflation and deflation. An economy shows growth when the volume of bank credit increases.
What is business cycle and its main features?
Ans: The business cycle is mainly caused by supply and demand forces. This is accompanied by the availability of capital, future expectations and GDP. The cycle is generally divided into four segments. It is also known as the features and phases of business cycles. They are expansion, peak, contraction, and trough.
What is business cycle diagram?
Business cycles are characterized by boom in one period and collapse in the subsequent period in the economic activities of a country. These fluctuations in the economic activities are termed as phases of business cycles. The fluctuations are compared with ebb and flow.
What are the 5 phases of the business cycle?
It starts with depression to be followed by recovery, prosperity, boom, recession and ultimately ends up again with depression. These are the five phases or stage of a typical business cycle. It does not however, imply that every business cycle passes through these five stages in the same order.
What is an example of a business cycle?
The business cycle since the year 2000 is a classic example. The expansion of activity happened between 2000 and 2007 was followed by the great recession from 2007 to 2009. It started with the easy access to bank loans and mortgages. Since new homebuyers could easily afford loans, they purchased them.
What is the trough of a business cycle?
A trough is the stage of the economy’s business cycle that marks the end of a period of declining business activity and the transition to expansion. The business cycle is the upward and downward movement of gross domestic product and consists of recessions and expansions that end in peaks and troughs.
When the economy reaches a trough in a business cycle?
When the economy reaches a trough in a business cycle, which of the following will occur? Income, production, and employment will begin to rise. a movement to the left along the demand curve for loanable funds. You just studied 40 terms!
Which time period in business cycle is considered in between trough to peak?
These three P’s correspond to the three D’s of recession. An expansion begins at the trough (or bottom) of a business cycle and continues until the next peak, while a recession starts at that peak and continues until the following trough. U.S. expansions have typically lasted longer than U.S. recessions.
What does trough indicate?
What does a trough indicate? The GDP has stopped declining and has begun to increase.
Why are trough levels important?
To adequately evaluate the appropriate dosage levels of many drugs, the collection and testing of specimens for trough and peak levels is necessary. The trough level is the lowest concentration in the patient’s bloodstream, therefore, the specimen should be collected just prior to administration of the drug.
What causes a trough?
Formation. A trough is the result of the movements of the air in the atmosphere. In regions where there is upward movement near the ground and divergence at altitude, there is a loss of mass. The pressure becomes lower at this point.
What does peak to trough mean?
Lexicon.ft.com, the Financial Times’ glossary of terms, defines the term ‘peak-to-trough’ as follows: “The stage of the business or market cycle from the end of a period of growth (peak) into declining activity and contraction until it hits its ultimate cyclical bottom (trough).”
What is the purpose of a peak and trough level?
Peak and trough levels are drawn to determine a drug’s concentration within the system. They help determine if a drug is in a toxic range or if the dosage of the medication needs to be increased. It is important to know which medications need to be monitored and what the signs and symptoms of toxicity are.
What does peak and trough measure?
A “trough” is the lowest level of the drug in the patient’s blood stream, and is measured just before the next dose of medication is administered. A “peak” is the highest level of the drug in the patient’s blood stream and is generally measured about 30 minutes after a dose of medication has completely infused.
Is a wave a peak or a trough?
Waves have moving crests (or peaks) and troughs. A crest is the highest point the medium rises to and a trough is the lowest point the medium sinks to. Crests and troughs on a transverse wave are shown in Figure 8.2.
What is the distance between two wavefronts?
The distance between two consecutive wavefronts represents the wavelength of the sound wave. The frequency of the wave can be measured by counting the number of wavefronts detected by the observer over a period of time.
What is a medium in waves?
A medium is a substance or material that can carry a wave. The wave medium is not the wave and it does not make the wave; it merely carries or transports the wave from its source to other locations.
What type of waves travel up and down?
Transverse Waves The particles do not move along with the wave; they simply oscillate up and down about their individual equilibrium positions as the wave passes by. Pick a single particle and watch its motion. The S waves (Secondary waves) in an earthquake are examples of Transverse waves.
What are the 7 types of waves?
The EM spectrum is generally divided into seven regions, in order of decreasing wavelength and increasing energy and frequency. The common designations are: radio waves, microwaves, infrared (IR), visible light, ultraviolet (UV), X-rays and gamma rays.
What are the two types of waves?
Waves come in two kinds, longitudinal and transverse. Transverse waves are like those on water, with the surface going up and down, and longitudinal waves are like of those of sound, consisting of alternating compressions and rarefactions in a medium.
What are some examples of waves in real life?
Let’s analyze some daily life examples of transverse waves.
- LightWave. Lightwave forms the most important example of a transverse wave.
- Ripples in Water Pond.
- Plucking a Guitar String.
- Earthquake (Seismic S wave)
- Tsunami Waves.
- Electromagnetic Waves.
Can we get a diffraction grating in our daily life?
The effects of diffraction are usually seen in everyday life. One of the most evident examples of diffraction are those involving light; for example,when you take a keen look at a CD or DVD the closely spaced tracks on a CD or DVD act as a diffraction grating to form the familiar rainbow pattern.
What are 2 examples of longitudinal waves?
Some examples of longitudinal waves are sound waves, seismic P-waves, and ultrasound waves.
How do we use waves in our daily lives?
These waves have many uses which are vital to our daily lives: visible light allows us to see; microwaves and radio waves allow for long-range communication via mobile phones, television and radio; infra-red waves are used in night-vision cameras and in many remote controls; and x-rays are used in medical imaging; and …
How do electromagnetic waves affect our life in positive ways?
Electromagnetic Radiation is a spectrum that can be anything from Radio Waves to Gamma Rays. We use visible light to see, radio waves to send information, microwaves to heat food, infrared for sensors, UV damages our skin and is used in black lights, X-rays let us see bones, and Gamma Rays damage our body.
What are the applications of waves?
In fact waves have applications in almost every field of everyday life – from wireless communications to detecting overspeeding vehicles, from the music of guitar to laser – almost every aspect of our everyday life in some way involves wave.
What are 3 factors that can affect wave travel?
There are three main factors that affect wave formation: wind velocity, fetch, and duration.