Describe the Difference Between Business-Cycle Macroeconomics and Economic-Growth Macroeconomics

question 159

Essay

Describe the difference between business-cycle macroeconomics and economic-growth macroeconomics.

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Definitions:

Future Cash Flows

Estimates of the amount of money expected to be received or paid out by a business in future periods.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows equal to zero.

Present Value

The current valuation of a future sum of money or cash flows, when evaluated at a given rate of return.

Desired Rate of Return

The return a investor expects to achieve from an investment.