Revision Exam Notes ( Business Economics

Business Cycle -
Chapter 5

Example
BC-i.U-B-k.nl 920 .
GDPR Production level 9
living standard T

technology At assembly line : stock market valuer

→ China : eco showdown .

Recession cycle decline

of panic - in world

Basi fhicluatun
Eco : all about .

Activity : all
country
:
prosperity period
+
downturn .

Rythm fluctuation → Overall → over

Eco
Activity apuiod
=
Bc
/ Trade cycle .

ogteme

1-
]
alternate
good trade
Bad trade
etdt &
• •

period .
+

Price 9
/
•

•
Unempd
Eaponsion contraction
expansion 4
contraction
< Bust Activity HI
.

d
* feature
= Result ? .

Periodic ✓
Eco . variables
Recurrent ✓ it
fluctuation
Regular Interval
same length ✗ → Niti a-ha, Effi of GMP , Inflation ,

Gmploym .
 Boom

Ph¥ BCITC Hint abt periodic { sump

in BAdty

Ecovasiabe it yup down

movement

I
f- phases

a-
Expansion peaty
contraction / enough /
Boom , Boom/ Downswing / Depressing
upswing prosperity Recession

Makefiguseyoursetfhere

-①--!→nnd
p

T
Real
T
GDP T

Time →
 Broken line : shows Trend :
steady growth line : eco qwth

No Basi .

cycle

Lowest Level
Trough : overall Eco
Activity →

¥
qMBq Production
Eupomd
:
Revive
,
not indefinite

-
: - Peak : Then contracts 1 downturn

2.
i.
trough
: Lowest
Turning point
to
Revives
again
New
cycle

µG• expansion
-

}
National output , Employ , Demand , Capital eap ,
consumer Till
q
Peak
Eap ,
sales , pft ,
stock price , bank credit .net investment comes

Price costs prosperity std of factor income ••

, ,
,
living , e-

Runs till →
full emp , man production ,
all aviubkle Resource

usedup
1hr01 0
Gmp =
-

only Emp visible = frictional ,

situational
d d

strike Job change .

economy
structure change
,
 Later stage of Expansion
-
--•PEAR_
BC
highest point

}
demand in r
input cowing
supply t Fixed lnceaener

Price 9 Review 1h0min8sec } demand

Exp → on
stagnate
.
-

i.

Expansion Ends
-

-
.

Eco growth :
highest
stabilize .

qhostlime
Reverse
a

contraction
endless
growth ✗
demand then d halt be decline
After peak :
-

investing employment t

Producer stupid , pulse recognise *

high demand anticipate → investment continue

production continue

supply > Demand

One 4 Howley all sectors : slow them

Répid .

Producer 0£ →
Now hold back ¥Mt
Producer ; → Invest ☒ cap good mkt &
.

cancel order

inputmarket a

Recession starts

d
Price of input , wage ,
interest ,
demand , prices &

inventory sell at low -

to meet crunch •

I,
2
consumer
expect more low price purchase a
on
postpone
CS d demand & priced empt
"
d
,
, prod
D&s on
gap
credit I b investor contd
borrowing stocks
→

Depression 1 Trough
severe Recession
dem d

sluggish price a

Growth Rate Negative G) units shutdown .

Interest Rate f liouid money A

cash
holding
→

Bank crisis

Industry Excess
capacity
:

Bankruptcy ,
liouiddtns T

Most Bottom : Trough Ex Great Depression 1929-33

 STORY OF CHAPTER 8
2 -

production Employment Lowest

•
,

Input ke Price high &

etna
yahise
'

hai ki
• sab kuch
Badhnelagta
(
Expansion)
& Peak Pe Poheh
enpemsionka End Sati hai lheeze .

Inflation

• fir ek waot aorta hai wit fixed Income Consumer Budget Review astrid#
←

Ceonsumpteon investment , demand Par Twist Producers

•
,
kamhonelagti →

tenant Pehchemni Paate & Produce kente Taatehein

•
Ye hua consumer market me .
Producer hurt hue sack Iaenlke .

investment Kam Kuske Inputs lone

Mshe Badla nikola
future capital +
Band kartht ( Raw mat Labor)
,
demand d Recession kishuruaat
:<
Capital goods

•
consumer demand ka Kam hone
further consumer demand to reduce
Karta nai Kain ? .

how income how demand

of wage linterest earners .
.

- : Consumer postpones demand . Recession widens .

Of hoop BadhtataRha

•
na investment ,
na Bank cyst .
Stock market pe impact ,
investors get
no
Belief Left .
Depression ( Recession .
ka -91T )

Depression me Bank ,
Industry ,
holding cash lliouidty ) ,
Roi ,

credtavailabiklg he Baare Me Learn Karo .

• Depression se Enpemsior I entail 4EdT angst Later force Uthate

hein
 History Recovery
Rest in check
paragraph lofsm)
-
•
 Recovery
Endless contract ✗

Pessimism 27
optimism of 3*2 i. Reverse .

I Labor Mkt ( accept low to survive

Poverty wage
'
- :

Producer better
: town cost
of input
confidence : credit , technology , empt ,
demand R price T
income T
eaptn
self correct price mechanism . ( free mkt
economy)

investment By Producer T Recovery Turning pt

:
:

a
perfect timely ✗
intensity , length diff diff . Pattern ✗

•
Predict ? Indicators →
activity me
changes at measure .

In
Leading lagging coincident /concurrent

write
all
:

Exam=pee
 • indicators :
covered in the end .

Bc in decision
use
making
•

understand demand & profit & busi success

I forward plan
frame policy
.

hi bedlam
BE Ko samajhke Basi .

ceapansion .

Ka
Importance
'

decision Ñ to / Downsize
-

Manager Expand .

Prodi

}
level
fluctuate
-

lnputorder place
i.
manage
-

boom
"
-
Able to change level of pod downturn
recession
launch
New
entry
success
of
-

recovery
.

longterm survival .

all sector ?
impact eoually No
-

More vulnerable ones : cyclical :

fashion , electric good
in Boom
{ strong demand + sharp
fall ) house builder, restraint

advertise tour ,

construction , infra .

-
some busi Benefit from Downturn

Customer think good value

Ya ,
-

for money
-

cheaper compared to more eap

-

product
condusionofhapter Manager
shud Be
DEA

hai}
forecast anti reliable loot &
alert
+
Beka Phase & Eco condition at impact
anticipate
Aetius impact dalti +
current +
future Busi .

Porpoise
for changes
uñiñ
( asap?

BC-features_
- duration ,
intensity , period ,
time differ
-

regular'X length duffer

-
Free market ,
socialist ✗

-
Pervasive -
1 sector disturb all

Affect some sector more -

capital good ,
inns trial .
dusakele
- Consumer
agriculture d
goods .

to understand ✗
-

complex . -

uniform
reason

characteristic same ✗

causes samex

predicts
-
Bad repercussion -
on all eco variable .

contagious
 trade
- International . I
country to other ( due To
Relation

leg 1930 Great Depression of USA , Britain affected world .

Changes before
Leading :
economy follows
pattern
tagging coincident

• stock price change . Concurrent

historical
performance
•
coincide
•
pftmgn & plots
•
Observable after Csimultaneous .

housing index
eco trend
with BC movement)

lñlt rate index .

after real output o

cumntslateoy Bc
orders
• new
of change .

consumer good ,
'

Rate of change
capital goods •
measure the change G-
É
.

oil 31st etc LET

which
Permits
happened .

application
• Slow
dlvry
•
Money guthsate
"

signal
" " "

onset the Bc
of BC
-

confirm
auusatex
9- GDP
timing ✗ eye unemp
Ind Prod?
corporate profit .

Weeks later
-
impact lab cost
pie inflation
or not at all
int rate income
-
-

sales
crash Prices oycomodity
of setoohymtt Fin Mkt Bend

economy actual
pending
Activity qstoch Prices .

impact
BCC-eamples-H.im#GreatDep.1930-

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