The Accelerator Principle is an economic concept that proposes investment levels respond to growth in output, suggesting that changes in the rate of output growth result in changes in investment.
Automatic stabilizers are built-in changes in government spending and taxation that dampen the business cycle by adjusting automatically with the economy's performance without additional legislative action.
An overarching term that encompasses various elements that affect the general climate of the economy and political situation, thereby influencing the profitability and prosperity of businesses.
The business cycle refers to the recurrent periods during which a nation's economy moves through phases of recession and recovery. Historical research by economists has identified both short-term and long-term cycles.
The business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of expansion, peak, recession, trough, and recovery phases.
In the context of finance and economics, contraction can refer to various scenarios including the distribution of assets and economic downturns. It is important to distinguish these different contexts to understand the implications fully.
Government economic policies designed to dampen the effects of the business cycle, such as the Federal Reserve Board's action during the early 1980s inflation to raise interest rates and reduce demand.
Cyclic variation refers to regular and recurring changes in economic activity influenced by factors such as the business cycle or seasonal fluctuations.
Cyclical demand refers to patterns of consumer demand for goods and services that vary cyclically over time, often in response to external factors such as seasons, economic conditions, or business cycles.
A cyclical industry is characterized by frequent variations in output, often influenced by seasonal changes and broader economic cycles. This is evident in industries like construction, which experiences reduced activity during winter and fluctuates with changes in interest rates and demand.
Cyclical unemployment refers to the unemployment caused by a downturn in the business cycle. It typically rises during economic recessions and falls when the economy improves.
An Economic Cycle refers to the fluctuating levels of economic activity that an economy goes through over a period of time, commonly classified into phases such as expansion, peak, contraction, and trough.
An index of leading indicators is a composite index comprised of various economic indicators that are used to predict the future direction of the economy.
The Kondratieff Cycle, also known as the Kondratieff Wave, is a theory proposed by Soviet economist Nikolai Kondratieff in the 1920s, which suggests that the economies of the Western capitalist world experience major up-and-down 'supercycles' lasting 50 to 60 years.
A fiscal year that aligns with the natural cycle of a given business rather than the calendar year, often ending when inventories and activities are at their lowest level.
A peak represents the highest point of the business cycle in a particular phase of economic activity, typically characterized by maximum output, employment, and consumer spending.
The term 'recovery' in various fields refers to the period when economic activity picks up after a downturn, absorption of costs or collections in finance, and rising prices in investment markets.
A slump denotes a noticeable drop in economic or productive activity. While it indicates a downturn, it is generally less severe than a recession or a depression.
Stabilization refers to various efforts and actions aimed at maintaining equilibrium in financial, economic, or market environments, ensuring stability in currency exchange rates, economic cycles, or securities prices.
In economic terms, a trough signifies the lowest point in a business cycle, marking the end of a declining phase and the start of an expansion or recovery.
An upswing refers to a period characterized by an improvement or acceleration in economic growth, also known as an economic expansion. This phase typically features increased economic activity, rising GDP, higher employment rates, and often improvements in consumer and business confidence.
A financial term often used to describe a low point in economic activity, as seen in a 'trough' in the business cycle.
