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Project Term - Macroeconomics
Topic - The business cycle
Problem 1I. Study the diagram and answer the Problems that follow:i. Briefly describe the term business cycles.ii. Label the phases in the diagram above. (Phase 1 to 4)iii. In which phase is there generally a moderate decrease in spending?iv. The most severe downturn / downswing (which is seen by some economists as an inevitable part of the economy) is known as ...?v Which turning point marks the end of an economic prosperity and the start of contraction?vi. Which number in the diagram is used to indicate the peak point of a business cycle?
Problem 2Analyse the effect of the contraction phase on the vulnerable members of society. (economically marginalised groups)
Problem 3Analyse the causes of a business cycle according to interventionist approach.
Problem 4Distinguish between TWO economic indicators used in forecasting economic activities of the country (use one clearly labelled diagram to illustrate all indicators).
Problem 5Critically evaluate the relationship between tax rate and tax revenue by means of a clearly labeled diagram.
Problem 6Use GDP data below to explain the importance of moving averages in the forecasting of business cycles.
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