Historical Political Business Cycles In The United States

A business cycle is the upward and downward actions of financial activity over a time frame. The slowing ceases at the trough and at this point the economy has hit a bottom from which the subsequent section of enlargement and contraction will emerge.

Accelerator impact This states that investment will depend on the rate of change of financial growth.

The fluctuations in wages are almost the same as in the level of employment (wage cycle lags one interval behind the employment cycle), for when the economic system is at high employment, workers are in a position to demand rises in wages, whereas in durations of high unemployment, wages are inclined to fall.