Recovery - Phases of business cycle
Explain about the term Recovery in phases of business cycle.
Expert
Recovery:
Depression phase does not carry on indefinitely. Depression includes in itself the gems of recovery. The regulation workers now come forward to work at low wages. Since the prices are at its lowest the consumers, who postponed their consumption expecting a still further fall in price, here starts consuming. The banks, along with accumulated cash reserves, currently come forward to provide loans at easier terms and lower rates. Since demand increases the stock of goods become inadequate. Now the economic activity starts picking up and the investment pickup. Service and output slowly and steadily begins to grow. Raised income raises demand, resulting in rise in prices, employment, profits investment and incomes. The wave of recovery when initiated soon begins to feed on itself. Stock markets become live therefore hastening the revival. Optimism expands among the entrepreneurs. Demands and bank loan for credit starts rising.
When an exceptionally warm winter caused the quantity of cashmere sweaters supplied to exceed the quantity demanded at the present market price, in that case: (1) cashmere sweaters will be more heavily demanded subsequent year than this year. (2) an overload of cashme
Workers who keep their jobs will be more productive after firms adjust to raises in: (1) competition in an industry. (2) wages. (3) technological advances. (4) capital costs. (5) government regulation. Hey friends please give your
Explain the term business cycle in brief.
The demand for labor is less elastic when: (w) resource substitution is easy. (x) output demand is relatively inelastic. (y) wages are a huge percentage of total cost. (z) firms have more time to adjust to wage changes. Q : What are the features of phases of What are the features of phases of business cycle?
What are the features of phases of business cycle?
Labor supplies depend on wage rates and also: (w) labor force participation and capital availability. (x) worker skills and preferences regarding employment. (y) technology and the price of output. (z) labor force participation and derived demand.
By a purely financial perspective, you must stop going to school while you: (w) graduate from college. (x) have to take out educational loans at interest rates which exceed the inflation rate. (y) face opportunity costs of education exceeding the expe
A personal supply of labor is exemplified by an income effect which dominates the substitution effect if: (w) Trina retires to a beach condo after working for the city for 42 years. (x) members of a rock band give up touring for a yea
When total variable cost exceeds total revenue whatever output levels but a perfectly competitive firm: w) must produce in the short run. x) is making short-run profits. y) must shut down in the short run. z) has shel
Illustrates the Barometric technique of Demand Forecasting?
18,76,764
1957406 Asked
3,689
Active Tutors
1431614
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!