Financial Analysis

perplexity 1 1.1 blood line rung The fear cycle is the periodic hardly irregular up-and-down movements in economic activity, calculated by fluctuations in real GDP and other macroeconomic variables. * Description of the 4 stages (i) Prosperity anatomy: Expansion or Boom or Upswing of economy. When in that location is an expansion of output, income, employment, prices and profits, in that location is in addition a eject in the trite of living. This period is termed as Prosperity phase. Examples of the features of successfulness are in high spirits level of output and trade, high level of effective demand, high level of income and employment, rising lodge in rates, inflation, super expansion of verify credit and overall business optimism. Question 1 (continued) 1.1 Business cycle (continued) (ii) fadeout Phase: from successfulness to recession (upper turn point). The turning point from prosperity to depression is termed as Rece ssion Phase. During a recession period, the economic activities disinclined down. When demand breaks attending, the overproduction and future investment plans are also given up. thither is a steady decline in the output, income, employment, prices and profits. The businessmen regress confidence and become pessimistic (Negative). It reduces investment.

The banks and the commonwealth try to energize greater liquidity, so credit also contracts. Expansion of business stops, stock market illumes. Orders are cancelled and people start losing their jobs. The increase in unemployment causes a corking decline in income and a ggregate demand. Generally, recession lasts ! for a picayune period. (iii) Depression Phase: Contraction or Downswing of economy. When there is a around-the-clock decrease of output, income, employment, prices and profits, there is a fall in the bill of living and depression sets in. Examples of the features of depression are the fall in volume of output and trade, the fall in income and rise in unemployment, the decline in consumption and demand, the fall in interest rate,...If you want to get a exuberant essay, order it on our website: OrderCustomPaper.com

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