What are the characteristics of a business cycle
What are the characteristics of a business cycle?
Expert
Characteristics of a business cycle are as follows:
1. This is synchronic. The downward and upward movements tend to arise at all similar period in all industries. The waves of depression or prosperity generate a wave in another industry. While industry picks up to provide more service and more income and so forth to workers and this provides new orders for capital goods and raw materials. It helps other firms to prosper as well.
2. The cycle is a wave-as movement. The era of prosperity and depression can be alternately considered in a cycle.
3. Cyclical fluctuations are recurring within nature. The different phases are repeated is followed through depression and the depression again in followed through a boom.
4. In nature business cycles are cumulative and self –reinforcing. All movements feed on itself and keep up the movement in similar direction. Once booms starts this goes on growing until forces accumulate to reverse the direction.
5. There can be no indefinite eternal or depression boom period. All phase include in itself the seed for other phase. So, the boom, when this reaches its peak, turns to recession.
6. Business cycles are pervasive within their effects. The cyclical fluctuations influence each and every part of the economy. Prosperity or depression felt in one part of the economy makes its impact in other part as well. The cyclical movements are still international in nature. The mechanism of international trade creates the boom or depression in one country shared though other countries also.
7. Presence of a crisis. The down and up movements are not symmetrical. There downward movements are not symmetrical. And there downward movement is more rapid and violent than the upward movement.
Signaling: (w) attempts to finesse adverse selection. (x) involves behavior by agents to communicate special qualifications which will elicit the offer of a contract from a principal. (y) refers to potential employees obtaining skills, education or ex
When the real wage raises, in that case an additional unit of: (w) labor supplied will buy fewer goods. (x) leisure is more expensive. (y) output need more labor time. (z) capital becomes more highly utilized. Can
Illustrates the term shot run production function?
A principal who checks the qualifications of a potential agent before giving the agent a contract is engaging within the process of: (i) signaling. (ii) determining an efficiency wage. (iii) predatory behavior. (iv) screening. (v) discrimination. Q : Employment Screening If job applicants If job applicants are asked for letters of recommendation and copies of their college transcripts, in that case a firm is practicing: (1) wage discrimination. (2) employment screening. (3) job signaling. (4) a structural employment system (5) credentialism.
If job applicants are asked for letters of recommendation and copies of their college transcripts, in that case a firm is practicing: (1) wage discrimination. (2) employment screening. (3) job signaling. (4) a structural employment system (5) credentialism.
dear Please read carefully about in structure and requirement of the assessment. I need quality work with academic writing with less than 5% similaraies and make sure if any studens ask same assessment to avoid plagiarism
Does managerial economics as a tool for decision making? Explain this term.
Illustrates the important areas of managerial economics as a tool for decision making?
The arc elasticity of Plastibristle’s demand for labor in between point c and point d is approximately: (1) 0.375. (3) 0.545. (4) 0.833. (4) 1.200 (5) 2.000. Q : Signaling and Screening Problem Assume Assume that you view a degree as a ticket to a high-paying job along with prospects of quick promotion, and that accumulating human capital by learning and studying valuable material is largely not relevant. Your perception is which a college degree f
Assume that you view a degree as a ticket to a high-paying job along with prospects of quick promotion, and that accumulating human capital by learning and studying valuable material is largely not relevant. Your perception is which a college degree f
18,76,764
1947267 Asked
3,689
Active Tutors
1423469
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!