In the market economy, there are four phases of the business cycle. ... In the business cycle, there are four phases, and these phases are prosperity, recession, depression, and recovery. ... This phase is sometimes called Peak Prosperity, and during Peak Prosperity, it is a good time for new businesses to start up. ... Depression is the next step in the business cycle. ... Without Recovery, Recession, Prosperity, and Depression, the business cycle wouldn't be. ...

• Word Count: 346
• Approx Pages: 1
• Grade Level: High School

During the four business cycles, the Fed dictates the levels of each in order to pull out of a depression or balance a peak. ... This is often the policy of a peak in order to combat heavy inflation as more people can afford to borrow and there is more investments. ... By increasing the discount rate, money supply decreases because there is less borrowing of money from the reserve by banks in order to carry out loans; increasing the discount rate is often associated with a peak or recovery time period. ... Along with the FDIC, the FED make sure banks can not go under during a depression or l...

• Word Count: 372
• Approx Pages: 1
• Grade Level: Undergraduate

Inflationary window is a dangerous critical point in the capitalist economy system. When the economy approaches the inflationary window, it means there has been a lack of coordination and cooperation between private and public sectors. If the inflationary window left unchecked, it will cause crowdin...

• Word Count: 1364
• Approx Pages: 5
• Grade Level: Undergraduate

Measuring the economic environment and its position in the economic business cycle is not an exact science. ... To judge the position of the economy on the economic business cycle we need to consider the trend or pattern of these indicators. ... Therefore it can be said that on a global scale the world economy can be placed on the business cycle as a trough. ... Such stability can be found at the height of a peak in the business cycle or at the base of a trough or downturn. ... From this it can be said the UK economy is at the bottom of a trough in the business cycle. ...

• Word Count: 3263
• Approx Pages: 13
• Has Bibliography

These kinds of statements encouraged investors to believe that the market would continue to be strong, which could be one of the causes of the crash. (1929 ) The Crash and The Depression After the crash, production fell nearly 50% from the business cycle peak in August 1929 to March 1933. ...

• Word Count: 1366
• Approx Pages: 5
• Has Bibliography
• Grade Level: High School

These kinds of statements encouraged investors to believe that the market would continue to be strong, which could be one of the causes of the crash. (1929 ) The Crash and The Depression After the crash, production fell nearly 50% from the business cycle peak in August 1929 to March 1933. ...

• Word Count: 1352
• Approx Pages: 5
• Has Bibliography
• Grade Level: High School

In early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928 and peaked at 381 in September of 1929. It was anticipated that the increases in earnings and dividends would continue. The price to earnings ratings rose from 10 to 12 to 20 and...

• Word Count: 1262
• Approx Pages: 5
• Grade Level: High School