Business Cycle Essay -- essays research papers

In everyday society, companies argon affected by the economy. The company either suffers or benefits depending on what kind of economy it is. This result depend on what kind of company it is, and what kind of market the line of descent 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 turn is not predictable, but its phases seem to be. Many economists site four phasesprosperity, liquidation, depression, and recovery. During a completion of prosperity, a rise in production leads to increases in employment, wages, and profits. Obstacles then obtain to obstruct further expansion. Production costs can increase, helping pass water a rise in prices, and consumers buy less. Inventories accumulate, causing price declines. Manufacturers take up to diminish workers are laid off. Such factors lead to a stage of liquidation, and money is hoarded, not invested. Production cutbacks and factory shutdowns occur. Unemployment becomes widespread. A depression is in progress. Recovery may be initiated by a reawakening in consumer remove or government action to stimulate the economy. Prices rise more quick 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...