2.5.3 Trade Cycle

1. Parts of the trade cycle: A ... is when there is increasing output and income and falling unemployment (8)
4. Parts of the trade cycle: A ... is when national income is high, economy working beyond full employment. Overheating is possible, C and I is high, tax revenue is high, wages and profits rise. Imports rise and inflation occurs (4)
5. Causes of trade cycle: ... shocks affect aggregate demand as there is an increase in interest, and increase in taxation, the stock market crashes and the housing market bubble bursts causing collapse (6, 4)
6. Causes of trade cycle: ... shocks affect aggregate supply with there being a sharp rise in commodity prices (6, 4)

2. Parts of the trade cycle: A ... is when output and income fall, there is a fall in C and I. tax revenues fall, G on benefits increases and inflation declines (8)
3. Parts of the trade cycle: A .. is when there is high unemployment, low consumption, low investment and low imports (9)
7. The ... is a cycle or series of cycles of economic expansion or contraction (5, 5)

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