The Macroeconomy in the Short Run I (Business Cycles) Flashcards Preview

Macroeconomics > The Macroeconomy in the Short Run I (Business Cycles) > Flashcards

Flashcards in The Macroeconomy in the Short Run I (Business Cycles) Deck (2)
Loading flashcards...
1

Division of an "Business Cycle"

1. Recovery/Expansion (visible trough pro-longed positive
output growth)

2. Peak

3. Recession/Contraction (visible trough pro-longed
negative output growth)

4. Trough

2

Peak and Trough in Burns-Mitchell diagrams

Peak:
Any quarter that is followed by two quarters with negative growth rates of real GDP

Trough:
First quarter following a peak that is succeeded by two quarters with positive growth rates of real GDP