Unit 3 Assignment: Business Cycle

Study the charts below, then complete the following exercise.

Exercise 1.
Write a brief description, based on what you see in the charts above, of the following phases of the business cycle:

1.Trough:

2.Expansion:

3.Peak:

4.Recession:

Exercise 2.
Review the information on the business cycle, then complete the chart below describing conditions in the phase of the business cycle. For example, “Housing Construction.” What happens to housing construction during an expansion? Does it increase or decline? That’s what you need to describe.

Explanation of Four Phases of Business Cycle

Prosperity Phase: When there is an expansion of output, income, employment, prices and profits, there is also a rise in the standard of living. This period is termed as ‘prosperity phase’.

The features of prosperity are:

•High level of output and trade.
•High level of effective demand.
•High level of income and employment
•Rising Interest rates.
•Inflation
•Large expansion of bank credit.
•Overall business optimism.
•A high level of MEC (Marginal Efficiency of Capital) and investment.

Due to full employment of resources, the level of production is maximum and there is a rise in GNP (Gross National Product). Due to high level of economic activity, it causes a rise in prices and profits. There is an upswing and the economic activity and economy reaches its Peak. This is also called a Boom Period.
Please insure that any and all quotes used in your work are properly attributed to their original author through quotation marks and citations to avoid issues of plagiarism, which will have a negative impact on your grade.

Assignment Resources:

Download the Word document below, it includes the assignment information and the table ready for you to complete. If you do not have Word, a PDF version of the worksheet is also provided. You will need to recreate the table in a software application of your choice. All documents need to be saved as a PDF for submission. Alternatively, you can use the text box on the submission page to complete the assignment, you have the ability to recreate a table using the additional formating tools.

EconomicsWorksheet-Unit3AssignmentBusinessCycles.docx EconomicsWorksheet-Unit3AssignmentBusinessCycles.docx

7 June 2017, 1:50 PM

EconomicsWorksheet-Unit3AssignmentBusinessCycles.pdf EconomicsWorksheet-Unit3AssignmentBusinessCycles.pdf

7 June 2017, 1:50 PM

Unit 3 Assignment Rubric Business Cycles.pdf Unit 3 Assignment Rubric Business Cycles.pdf

31 July 2017, 10:08 AM

Grading criteria

Business Cycle – Rubric

Description Task

All parts of the assigned task are complete.
Maximum score25

Description Task

All parts of the assigned task are accurate.
Maximum score30

Chart Task

All parts of the assigned task are complete.
Maximum score10

Chart Task

All parts of the assigned task are accurate.
Maximum score20

Grammar and Vocabulary

Examine grammar. Does this assignment have proper punctuation? Are words spelled correctly? Does the author provide full and complete sentences?
Examine the assignment’s vocabulary. Does it use precise language and subject-specific vocabulary?

Maximum score15

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