Post by account_disabled on Nov 12, 2023 3:40:52 GMT
In the economy, we can distinguish several phases of the business cycle that influence many economic processes. If you don't know what its individual stages are and how to reduce the negative effects of the recession in your company - read this article! What is the business cycle? As we know, every economy is characterized by high dynamics and fluctuations, which create the phenomenon of the business cycle . It informs at what stage and condition a given country is in a given period. With such knowledge.
We can make better decisions regarding running our own business, investing or simply everyday life. When examining the phases of the business cycle, economic indicators are used, including unemployment rate, GDP, CPI index cost of goods and services , industrial production index philippines photo editor measuring industrial activity in the country , investment rate, society's income level, etc. Causes of business cycles in the economy The causes of economic fluctuations include the following factors A change in the money supply, i.e. how much cash, financial assets, etc. are in circulation Decreased demand, i.e. lower willingness of consumers to purchase goods and services - results from fear of deterioration of the economy in the future, households strive to buy basic necessities.
The method of conducting the country's monetary policy e.g. lowering/raising interest rates, lower/higher budget expenditures Introducing technological innovations that increase efficiency, production potential, and emphasis on research and development activities The behavior and reactions of investors on the stock exchange, which may result in, for example, the bursting of a speculative bubble Society's greater tendency to consume goods or accumulate savings rather than to invest Armed conflicts, natural disasters, etc.
We can make better decisions regarding running our own business, investing or simply everyday life. When examining the phases of the business cycle, economic indicators are used, including unemployment rate, GDP, CPI index cost of goods and services , industrial production index philippines photo editor measuring industrial activity in the country , investment rate, society's income level, etc. Causes of business cycles in the economy The causes of economic fluctuations include the following factors A change in the money supply, i.e. how much cash, financial assets, etc. are in circulation Decreased demand, i.e. lower willingness of consumers to purchase goods and services - results from fear of deterioration of the economy in the future, households strive to buy basic necessities.
The method of conducting the country's monetary policy e.g. lowering/raising interest rates, lower/higher budget expenditures Introducing technological innovations that increase efficiency, production potential, and emphasis on research and development activities The behavior and reactions of investors on the stock exchange, which may result in, for example, the bursting of a speculative bubble Society's greater tendency to consume goods or accumulate savings rather than to invest Armed conflicts, natural disasters, etc.