Business Cycle Essays (Examples)

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Business Cycle
The idea of the business cycle goes back at least to Marx' description of capitalisms booms and busts in Das Kapital, and has been described in more detail by modern writers starting in the 1940s. Business cycles -- which do not occur at any sort of regular interval -- are generally understood in terms of when the direction of the economy changes (Romer, 2008). As Brad DeLong (2010) describes, Marx noted that business cycles occur when there is an overaccumulation of capital and overproduction of goods. In order to restore balance to the overheated economy, a crisis must follow. This crisis will create the depreciation of the value of assets. Marx further described what would happen to employment (it would go down). Real capital is destroyed, which means the equipment and factories must cease production, workers must be made unemployed and capital will inevitably sit on the sidelines --….


Thus, recession can be defined as a cure to the ill-policies of government and central bank that caused boom in certain sectors such as housing market. Because of that boom, easy credit policies, subsidies, easy lending and many other government and central bank caused factors, the prices soars to extreme high and causes inflation and money gets trapped in mal-investment. As the recession acts as a cure to this situation of extreme falsehood, it starts decreasing the extent of false demand and tries to bring the market to its actual true situation. The prices start declining and the economy starts recuperating from the illness of false heights.

Since recession itself is the cure of problems of mal-investment that were caused by the government and central bank's ill easy money and credit policies, it cannot be cured by further stimulus. The stimulus will only sustain the recession for longer periods until all….

Business Cycles: Phases, Indicators, Measures, Economic Evolution, Outlooks
is currently recovering from its worst recession in over 25 years. Most economists consider the rapid rise in housing prices (the bubble) and the subsequent collapse in that market to be the primary cause of the recession. Explain what housing market circumstances were responsible for the collapse of that market.

Observers attribute the 2001-2006 housing bubble to "everyone from home buyers to Wall treet, mortgage brokers to Alan Greenspan." (FactCheck.org.)

Causes were five-fold -- and all reducible to the consumer:

REALTOR encouraged people to buy (and sell)

Builders built more homes than were needed. This was fed by the media's emphasis on the American myth of each American needing a home to call himself. There was a home-buying mania.

Lenders created poorly designed loan products to fill demand. Economic derivatives, specially the "credit-default swap" were used irresponsibly in that swaps and other derivatives were sold and resold in….

Business Cycle Analysis
Overview- rom the end of World War II to the early 1970s, China was relatively isolated from the global landscape. It was a part of the Soviet Communist Bloc, but remained inwardly focused on improving its own infrastructure and economy, all the while poised for rapid modernization. Openness towards the West began around 1978 with increased trade, a small amount of additional transparency internally, and at least the semblance of allowing more capitalistic templates like ownership of businesses, development of more modernized factories, etc., and less journalistic control. After 1978, Mao's successor Deng Xiaoping realized that the government had to increase the standard of living for its population, or face revolt. Deng's, and subsequent regimes, focused on market-oriented economic development. By the turn of the century, for instance, Chinese output had quadrupled, living standards improved as well as personal choices -- to a degree. There has been increased….

However, it is also necessary that everyone have a clear idea and common vision of why the party is being planned, and what is being celebrated. At the next meeting, some of the people who were at the company for a long time can talk about their involvement with the company like the 'rough times' they experienced early on during the organization's early years. The individuals with the most interest in event planning can talk about their ideas about what makes a quality event, and even the least committed members of the team can share with others what made other events they have attended in the past 'work,' what new things they would like to try, and also what working for the company means to them and how they would like to celebrate these values. Ideally, everyone should draw from one another's strengths, interests, and aptitudes.
4. What should she….

Business Cycles
The Keynesian approach to recessionary gaps is to increase government spending and lower taxes -- run a deficit -- in order to spur aggregate demand. In the Keynesian model, aggregate demand is affected by a number of different factors -- consumer consumption, business investment, government spending and net exports. During a recessionary gap, consumer spending and business investment are probably both down, which leaves the other two factors to prop up the economy. Government spending is an efficient way of directly putting money into the economy, thereby giving consumers more money to spend and businesses more money to invest (FRBSF, 2013). Knowing that the government is working hard to spur economic growth can also change the underlying psychology of the market.

Lowering taxes is another means by which government can spur growth under this scenario. Lowering taxes allows for more spending from both consumers and businesses, since both will have….

Real Business Cycle
PAGES 8 WORDS 2336

Business cycle theories have been the topic of discussion for many years. There are several business cycle theories that are reliable and trustworthy, while others are controversial and easily disproved. The purpose of this discussion is to distinguish among the different theories of the business cycle. These theories include Keynesian aggregate demand theory, the Monetarist aggregate demand theory, and the new classical and new Keynesian theories of the business cycle and the real business theory. In addition, this discussion will describe the origins of, and the mechanisms at work during, the expansion of the 1990's, the recession of 2001, and the great depression.
Keynesian Theory

Aggregate Demand Theory

Aggregate demand simply describes the correlation between the amount of aggregate output and the price height when every other variable is held constant.

According to an article entitled "Aggregate Demand and Supply Analysis" from the Keynesian point-of-view the aggregate demand is determined "in terms of its….

GDP and the Business Cycle; Government Financial Bodies, How Fiscal Policies Impact Production and Employment
This memo will address three issues commonly discussed when talking about the economy. First, it will explain and describe how gross domestic product can be used to measure the business cycle. Second, it will describe the roles of the government bodies that are responsible for determining national fiscal policies. Third, it will explain how national fiscal policies impact the economy's production and employment. Specifically, it will examine how changes in government spending and taxing impact the economy's production and employment. Considered together, these three explanations should lead to a better understanding of fiscal policy at a national level.

Gross domestic product (GDP) is the monetary value of all of the finished goods and services that are produced in a country within a specific time period, usually each year. It includes all items, whether produced or consumed publicly….

UK Business Cycle and Current Economy
According to the basic tenets of the business cycle theory or model of economic trends, periods of high growth in GDP and rising prices (and wages) are followed by drops in economic activity as consumers/workers grow wary and spend less, producers start cutting back on supply and labor, and thus unemployment rises and consumers are able to spend less. As prices drop low enough and employment stabilizes, spending begins to resume, production and employment levels increase followed by wages, and a period of high growth is entered into again. The current economy in the United Kingdom is indicative of a nation at the bottom of a trough in the economic cycle, as various elements of the economy are beginning to stabilize yet a return to growth remains uncertain and very slow if it is occurring (BBC, 2012). Producer prices rose very slightly, which could be….

Economics
GDP and the Business Cycle

Gross domestic product (GDP) is the economic measure which quantifies the production within a country's economy in a single period of time. The measure, which is usually on an annual or a quarterly basis, is usually calculated as the total market value of all the finished goods and services that country during the period (Nellis and Parker, 2000). In 2012 the GDP in the U.S. had reached $15,094 billion dollars, an increase on the 2011 figure of $14,582.4 billion (Trading Economics, 2013). This in turn was an increase on 2010, when the GDP was $14,043 billion. This would appear to indicate a growing economy, where there is an increase in output. However, this is the market value on current prices, each year the increase includes inflation, so the real growth, that is the actual growth less an allowance for inflation, is a better measure of how….

The business cycle, or the seemingly inexorable ups and downs of the economy, is inevitable—there will be both recessions and periods of growth. But predicting when these highs and lows will come is challenging and has eluded even some of the wisest investors. “The key is to invest one cycle phase ahead,” and “investors need to have a forward-looking mindset so they can prepare their portfolios to capitalize" (Hicks, 2017, par.12). The difficulty of predicting the business cycle is one reason why investing low-cost mutual funds is often suggested versus the investor attempting to second guess the business cycle. For example, in regards to the current global economy, according to the World Economic Forum, although the world economy has rebounded from the global recession of 2008, “this has been the weakest post-recession recovery on record,” particularly in regards to productivity and investment (“Economic Storm Clouds,” 2018, par.1). In addition to the….

Business and Corporate
PAGES 4 WORDS 1234

Business Strategy
Business and Corporate

business strategy analysis of kraft foods

Analysis of Business Level Strategy

Kraft Foods Inc. is the second largest food company in the world and makes annual revenues in excess of $54 billion (Kraft Foods Annual eport, 2012). It operates in a highly competitive consumer foods industry where high volume sales are essential for competitive success. Tapping into new markets and growing one's brand portfolio are also important for growth and success.

Kraft Foods Inc. pursues a number of business-level strategies to support its corporate level strategies. The business level strategies are determined by answering the question How do we compete? (Ireland, Hoskisson & Hitt, 2008). Kraft Foods Inc. has selected product differentiation and brand development as its primary business level strategy. Product differentiation involves creating and conveying to the consumer a unique feature of the product portfolio that distinguishes the company from the competition and offers something that the consumers….

In contrast with the mutual funds, 'Mutual funds trade hundreds of stocks in many unrelated industries, with very little of the total portfolio in any single stock. By contrast, when a company expands into a new area, its portfolio consists of two stocks, typically 90% in the core operation and 10% in the new businesses' (Tirole, 2005). The diversification in majority of the cases is responsible for lower return and maximal risk factor. esearchers have observed that there is possibility of higher failure rates and lower returns for unrelated acquisitions than for related acquisitions. When the company acquires businesses in their own industry, it is observed that lowest failure rates and highest returns phenomenon occur. The reason why the diversification into unrelated business is considered to be risky is that the corporate is unfamiliar about the industry itself, and therefore the corporate is likely to overlook critical risk factors….

iWATCH
Market Structure

The Apple iWatch is centered in the smartwatch market. The market structure in which the product lies is oligopoly. Oligopoly refers to a market structure that is dominated by a few sellers. This is because the smartwatches are products which are produced by a few large companies, and every contribution of every company is considered substantial enough to be significant in the market. In addition, the companies in the market are cautiously aware of how rival companies react to change and particularly in association to price. This particular market structure is distinctive in the sense that the company's pricing as well as output decisions will also integrate the perceived or anticipated reactions of the competitors. For instance, in this case, the pricing and output decisions of iWatch will consider the anticipated reactions of other company products such as the Sony Smartwatch (Salvatore, 2015).

Elasticity of the product (iWatch)

The elasticity of….

Business Economics
The Limitations of the National Income Accounts in How They Represent Our Standard of Living

The national income accounts have been the center piece in all matters concerning economics across the globe. These rules are a primary source of reference in determining the economic status of a given nation. It is the most preferred indicator of the rate of improvement and making comparison across nations. However, it is not the perfect indicator for the economic state due to its limitations that give a false image of the highlighted economy (McEachern, 448).

To start with, the national income accounts do not include other financial details such as the non-market productions in a given country. These include activities such as preparations in various productions. For instance, in preparing food in a restaurant, one does not include the energy used by the person preparing the food before taking it for sale. hen such….

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5 Pages
Term Paper

Economics

Business Cycle the Idea of the Business

Words: 1515
Length: 5 Pages
Type: Term Paper

Business Cycle The idea of the business cycle goes back at least to Marx' description of capitalisms booms and busts in Das Kapital, and has been described in more detail…

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3 Pages
Essay

Economics

Business Cycles and Economic Outlook

Words: 1323
Length: 3 Pages
Type: Essay

Thus, recession can be defined as a cure to the ill-policies of government and central bank that caused boom in certain sectors such as housing market. Because of that…

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4 Pages
Essay

Economics

Business Cycles Phases Indicators Measures Economic Evolution

Words: 1419
Length: 4 Pages
Type: Essay

Business Cycles: Phases, Indicators, Measures, Economic Evolution, Outlooks is currently recovering from its worst recession in over 25 years. Most economists consider the rapid rise in housing prices (the bubble)…

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7 Pages
Research Paper

Economics

Business Cycle Analysis Overview- From the End

Words: 1862
Length: 7 Pages
Type: Research Paper

Business Cycle Analysis Overview- rom the end of World War II to the early 1970s, China was relatively isolated from the global landscape. It was a part of the Soviet…

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1 Pages
Term Paper

Business - Management

Business Cycles and Economic Outlook

Words: 499
Length: 1 Pages
Type: Term Paper

However, it is also necessary that everyone have a clear idea and common vision of why the party is being planned, and what is being celebrated. At the…

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4 Pages
Essay

Economics

Business Cycles the Keynesian Approach to Recessionary

Words: 1176
Length: 4 Pages
Type: Essay

Business Cycles The Keynesian approach to recessionary gaps is to increase government spending and lower taxes -- run a deficit -- in order to spur aggregate demand. In the Keynesian…

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8 Pages
Term Paper

Economics

Real Business Cycle

Words: 2336
Length: 8 Pages
Type: Term Paper

Business cycle theories have been the topic of discussion for many years. There are several business cycle theories that are reliable and trustworthy, while others are controversial and easily…

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3 Pages
Essay

Economics

GDP and the Business Cycle Government Financial

Words: 942
Length: 3 Pages
Type: Essay

GDP and the Business Cycle; Government Financial Bodies, How Fiscal Policies Impact Production and Employment This memo will address three issues commonly discussed when talking about the economy. First, it…

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1 Pages
Essay

Economics

UK Business Cycle and Current Economy According

Words: 374
Length: 1 Pages
Type: Essay

UK Business Cycle and Current Economy According to the basic tenets of the business cycle theory or model of economic trends, periods of high growth in GDP and rising prices…

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2 Pages
Essay

Economics

Economics GDP and the Business Cycle Gross

Words: 850
Length: 2 Pages
Type: Essay

Economics GDP and the Business Cycle Gross domestic product (GDP) is the economic measure which quantifies the production within a country's economy in a single period of time. The measure, which…

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1 Pages
Book Report

Business - Information Systems

Life Cycle Financial Risks

Words: 317
Length: 1 Pages
Type: Book Report

The business cycle, or the seemingly inexorable ups and downs of the economy, is inevitable—there will be both recessions and periods of growth. But predicting when these highs and…

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4 Pages
Research Paper

Business

Business and Corporate

Words: 1234
Length: 4 Pages
Type: Research Paper

Business Strategy Business and Corporate business strategy analysis of kraft foods Analysis of Business Level Strategy Kraft Foods Inc. is the second largest food company in the world and makes annual revenues in…

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13 Pages
Term Paper

Economics

Businesses Engaged in the 'Transfer

Words: 3950
Length: 13 Pages
Type: Term Paper

In contrast with the mutual funds, 'Mutual funds trade hundreds of stocks in many unrelated industries, with very little of the total portfolio in any single stock. By…

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7 Pages
Business Proposal

Business

Business Analysis of iWatch

Words: 2112
Length: 7 Pages
Type: Business Proposal

iWATCH Market Structure The Apple iWatch is centered in the smartwatch market. The market structure in which the product lies is oligopoly. Oligopoly refers to a market structure that is dominated…

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3 Pages
Essay

Economics

Business Economics the Limitations of the National

Words: 1086
Length: 3 Pages
Type: Essay

Business Economics The Limitations of the National Income Accounts in How They Represent Our Standard of Living The national income accounts have been the center piece in all matters concerning…

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