GDP growth, inflation, and unemployment

Running Head : Business Cycle

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Abstract

Business cycle has four fluctuations that it exhibits . This is because an economy cannot be said to on a steady growth throughout the period Therefore , during periods of lots of economic activities such as investments , a country would witness a boom hence expand on its growth However , during low economic activities , an economy slides towards recession hence contraction in the economy . In this study , we look at business cycle in US and at what stage

it is at the moment

Business Cycle GDP Growth , Inflation and Unemployment

Business Cycle

This refers to the fluctuations in economic activities especially in production over a certain period of time usually months and to some extent years . It involves the economy witnessing a boom in production over a certain period of time and shifting to a recession during some other period of time characterized with low Economic activities Economic growth is not a steady occurrence but rather involve fluctuations that are exhibited through the business cycle . Therefore during growth , an economy would undergo the following fluctuations an expansion , a peak , contraction (recession , and a trough (low point The diagram below illustrates the fluctuations in a business cycle

There are various economic variables that are used as indicators of business cycle . Among them is the Gross Domestic Product (GDP . However it has been argued that GDP which is a quick and simple indicator of a contraction in an economy and that it does not...