Trade cycle-keynes and mitchell description, Managerial Economics

Assignment Help:

Keynes and  Mitchell Description

According to Keynes description, a trade cycle is characterised by alternating expansionary and contractionary wavy movements in the aggregate business activity and there is some regularity in respect of the duration and time sequence of the upward and downward movement of a trade cycle. Furthermore, a trade cycle is characterised by the presence of crisis ,i.e., the peak and trough turning points are asymmetrical with the peak having pointed steep bends on either side while the trough has gently upwards slopping sides. In short, a trade cycle refers to the wavelike movements of the economy caused by outside impulses operating upon the economy.


According to burns and Mitchell, normal trade cycle consists of the four closely interrelated phases of revival, expansion, recession and contraction. The peak and trough represent the critical mark off points in the cycle. From this stand point the greater part of the cycle can be divided into the expansion phase which extends from trough to peak. In the neighbourhood of the peak and trough there are the upper and lower turning points of relatively short duration designated as revival and recession.


Related Discussions:- Trade cycle-keynes and mitchell description

Real and nominal wages, Real and nominal wages Wages are wanted only f...

Real and nominal wages Wages are wanted only for what they will buy, real wages being wages in terms of the goods and services that can be bought with them.  Nominal wages

Discuss five negotiation skills of successful negotiators, QUESTION 1 N...

QUESTION 1 Negotiating skills remain a critical capability for procurement practitioners. Skilled negotiators have the potential to improve the negotiating outcome. Procurers o

Explain about time series analysis, Q. Explain about Time series analysis? ...

Q. Explain about Time series analysis? An analysis of relationship between variables over a period of time. Time-series analysis is helpful in assessing how an economic or othe

Vanda-Laye Corporation, You are the new owner of Vanda-Laye Corporation. Yo...

You are the new owner of Vanda-Laye Corporation. You are interested in your company''s cost and revenue relationships as well as its future pricing strategies. Tasks: Analyze how

Derevatives ., how to solve problems using derivatives ?

how to solve problems using derivatives ?

Business cycle, BUSINESS CYCLES Meaning: The business cycle is ...

BUSINESS CYCLES Meaning: The business cycle is the tendency for output and employment to fluctuate around their long-term trends.  The figure below presents a stylised

Explain measuring arc elasticity, The concept of point elasticity is applic...

The concept of point elasticity is applicable where change in price and the resulting change in quantity are infinite or small. Though, where change in price and consequent hunger

Budget line and its economic interpretation, The Budget line and its econom...

The Budget line and its economic interpretation The indifference curve shows us consumer preferences but it does not show us the situation in the market place.  Here the consu

Individual firm and market supply curves, Individual firm and market supply...

Individual firm and market supply curves The quantities and prices in the supply schedule can be plotted on a graph. Such a graph is called the firm supply curve. A fir

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd