Draw a 20 to 30 year business cycle model for a particular country (Y-axix GDP, X-axis years
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- Draw a 20 to 30 year business cycle model for a particular country (Y-axix GDP, X-axis years up to 2022), mark and label the following points on the graph (A. recession, B. depression, C. peak, D. recovery, E. Expansion). Based on each five points report the figures for the following three economic indicators: unemployment rate, gross domestic product per capita, inflation rate.
- At each point of the business cycle explain the gains/losses for a group of people in that particular country. Explain why governments aim to achieve a low inflation rate and use GDP to determine the health of the country.
- Draw an aggregate supply curve (ASo) and aggregate demand curve (ADo), X-axis is GDP, Y-axis is Price Level, label the curve (ASo, Ado, Eo). Shift the demand and supply curve left and right and explain different factors that have contributed to the change (see chart below, fill and explain).
Label | Curve shifts | Contributing factors causing shift |
AD1 | Demand curve right | |
AD2 | Demand curve left | |
AS1 | Supply curve right | |
AS2 | Supply curve left | |
AD3 | Demand curve right | |
AD4 | Demand curve left |
- Research a country that has experienced low inflation, stable growth, high levels of employment and explain the contributing factors that helped achieve these economic aims.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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