Business Cycles

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Title: Business Cycles

Essay Details:

Subject: Business

Author: Tamra T

Date: August 21, 2014

Level: University

Grade: A

Length: 3 / 613

Essay text:

A peak is when business activity reaches a temporary maximum with full employment and near capacity output. 2. A recession is a decline in total output; income, employment, and trade lasting six months or more. 3. The trough is the bottom of the recession period. 4. Recovery is when output and employment are expanding toward full employment. Causes of business fluctuations A. Internal (endogenous) theories 1. Innovation theory 2. Psychological theory 3. Monetary theory B. External (exogenous) Theories 1. War theory a. Examples are WW2, the Korean war, and the Vietnam War 2. External shock a...

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