The ... is a cycle or series of cycles of economic expansion or contraction
Trade Cycle
1 of 7
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
Boom
2 of 7
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
Downturn
3 of 7
Parts of the trade cycle: A .. is when there is high unemployment, low consumption, low investment and low imports
Recession
4 of 7
Parts of the trade cycle: A ... is when there is increasing output and income and falling unemployment
Recovery
5 of 7
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
Demand side
6 of 7
Causes of trade cycle: ... shocks affect aggregate supply with there being a sharp rise in commodity prices
Supply side
7 of 7
Other cards in this set
Card 2
Front
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
Back
Boom
Card 3
Front
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
Back
Card 4
Front
Parts of the trade cycle: A .. is when there is high unemployment, low consumption, low investment and low imports
Back
Card 5
Front
Parts of the trade cycle: A ... is when there is increasing output and income and falling unemployment
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