Describe the Major Features of the Business Cycle

question 99

Essay

Describe the major features of the business cycle.Be sure to discuss what variables are affected by the cycle,a description of the key features that are apparent in the data,how variables are related to one another,how regular the cycle is,and how predictable the cycle is.

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Definitions:

Public Good

An item or service delivered at no cost to all individuals in a society, facilitated by either public authorities or a charitable organization or person.

Rival in Consumption

A characteristic of a good where its consumption by one person reduces its availability for another person.

Substitutes

Goods or services that can replace each other in use or consumption, where an increase in the price of one leads to an increase in demand for the other.

Nonrival in Consumption

Nonrival in Consumption describes a good where one individual's consumption does not reduce availability to others, such as a public broadcast.