On Timing Cycles. What Makes Identifying Parts Of The Business Cycle So Challenging?

Running head : Business hertzNameUniversityTutorDateIn economics , business bicycle is defined as the repeat levels of economic activity see by an economy in a given untaught over a long period of time . in that location argon five parts or stages of business cycle which include magnification , peak , recession , trough and convalescence . Economic increase is not a steady phenomenon and exhibits patterns of expansion peak and contraction . The five phases of economic reaping cannot be identified easily as a result of sealed challenges . It becomes so challenging to target the five phases of economic growth due to certain reasons . First , business cycles reflect the recurring rise and fall of economic activities , which is not easy to identify . Economic activities in this aspect relates to production , wages , prices , net income employment and any other macroeconomic activity .

The cycles are recurring , nonperiodic and one cycle should be much than one year making it difficult to measure out a season of expansion or contractionBusiness cycles reflect the inability of merchandise place to accommodate shifting markets for new and substitute products , good technologies and changing needs of occupational skills (Knoop Todd A , 2004 Technology and occupational skills are major challenges in determination of economic growth because of their rapid change . Business cycles are irregular , divert in frequency , duration and magnitude as a result of rapid change in major economic factors . This is a major challenge to economists and government when they try to measure the level of economic growth . Business cycle is heedful in form...If you want to get a full essay, revise it on our website: Ordercustompaper.com

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