Business Cycle Essay -- essays research papers

In everyday society, companies be affected by the economy. The company either suffers or benefits depending on what kind of economy it is. This forget depend on what kind of company it is, and what kind of market the problem does well in. The Business Cycle is what determines this factor. It is a term used in economics to designate changes in the economy.Timing of the business motorcycle is not predictable, but its phases seem to be. Many economists site four phasesprosperity, liquidation, depression, and recovery. During a geological flow rate of prosperity, a rise in production leads to increases in employment, wages, and profits. Obstacles then depress to obstruct further expansion. Production costs can increase, helping induce a rise in prices, and consumers buy less. Inventories accumulate, causing price declines. Manufacturers experience to diminish workers are laid off. Such factors lead to a period of liquidation, and money is hoarded, not invested. Production cutba cks and factory shutdowns occur. Unemployment becomes widespread. A depression is in progress. Recovery may be initiated by a reawakening in consumer involve or government action to stimulate the economy. Prices rise more rapidly than costs. Employment increases, and people buy more. Investment expands. A new cycle is under way. (msnencarta.com)(http//www.keystone-web.com/buscycle.html)Business cycles do not always behave as neatly as the model just given, and no two cycles are alike. Apart from the traditional business cycl...