Question 1 -11 define business cycles12 identify the four, Ask an Expert

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QUESTION 1 -

1.1. Define business cycles.

1.2. Identify the FOUR phases in the diagram above by means of their numbers excluding the turning points.

1.3. Which phase generally occurs when there is a mild drop in spending?

1.4. The most severe downturn / downswing which is seen by some economists as an inevitable part of the economy is known as ...?

1.5. Which turning point marks the end of an economic prosperity and the start of contraction?

1.6. Which number in the diagram is used to show the peak point of a business cycle?

QUESTION 2. Analyse the causes of a business cycle according to interventionists approach.

QUESTION 3. Distinguish among the THREE economic indicators used in forecasting economic activities of the country (use one clearly labelled diagram to illustrate all indicators).

QUESTION 4. Analyse the effect of contraction phase to the vulnerable society.

QUESTION 5. Critically evaluate the relationship between tax rate and tax revenue by means of a labelled diagram.

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