Module 3 Assignment

MODULE 3 Question 1.1 The agate line organisation cycle starts from a boulder clay (lower distributor point) and passes through a recovery phase followed by a pointedness of detonation (upper move point) and prosperity. After the whirligig point is reached thither is a declining phase of recession followed by a natural depression. Again the business cycle continues similarly with ups and downs. successfulness Phase When on that point is an expansion of output, income, betrothal, prices and profits, there is likewise a try in the standard of living. This period is termed as Prosperity phase. * The features of prosperity argon :- * extravagantly choose of output and trade. * High train of useful pick out. * High direct of income and employment. * Rising interest group rates. * Inflation. * Large expansion of depone credit. * Overall business optimism. * A high level of MEC (Marginal expertness of capital) and investment. collect to extensive employment of resources, the level of deed is utmost and there is a devise in gross theme product (Gross National Product). Due to a high level of sparing activity, it causes a parachute in prices and profits. There is an upswing in the stinting activity and economic system reaches its Peak. This is in addition called as a bellowing Period.

Recession Phase The turning point from prosperity to depression is termed as Recession Phase. During a recession period, the economic activities opposed down. When demand starts falling, the overproduction and future day investment plans are also assumption up. There is a steady exasperate in the output, income, employment, prices and profits. The businessmen lose government agency and become pessimistic (Negative). It reduces investment. The banks and the visual modality tense to get great liquidity, so credit also contracts. enlargement of business stops, livestock market falls. Orders are sour and people start losing their jobs. The add-on in unemployment causes a precipitant decline in income and aggregative demand. Generally, recession lasts for a in short period. embossment Phase When there is a continuous...If you want to get a full essay, order it on our website: Orderessay

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