Create a new account

It's simple, and free.

BUSINESS CYCLES AND PROFITS Introduction This

This research examines the relationship between business cycles and profits in the economy of the United States. In this research, completed business cycles that have occurred in the economy of United States over the past 40 years are considered.

Cyclical movements in the level of economic activity are recognized in economic theory (Ekelund and Hebert 413425). Significant effort is put into the measurement of business cycles, and into the development of indicators of change for such cyclical activity (Beckman and Tapscott 2428). Such measurement and indicator development provide data as to what and when, while failing to answer the underlying question of why. Although a great body of theoretical literature has evolved with respect to cyclical economic movement, no single theory or combination of theories has satisfactorily explained all such phenomena.The term business cycle is the name given to relatively shortterm fluctuations in the general level of economic activity, as measured by macroeconomic variables, such as changes in real gross national product or real gross domestic product (Gwartney, Stroup, and Studenmund 138). As early as 1819, Jean Sismondi, a Swiss economist, recognized and systematically investigated such shortrun economic fluctuations.

The first widely accepted working definition of the business cycle was formulated at the National Bureau of Economic Research (NBER) by Wesley Mitchell (Mitchell 57). Many economic theorists subsequently contributed to the further development of the theory of business cycles, including John Maynard Keynes (who stressed the psychological factors involved in the development of business cycles), John Hicks (who demonstrated through mathematical models how acceleration could induce several types of fluctuation in the level of total output), and Milton Friedman (who emphasized the role of monetary instability as a cause of macroeconomic fluctuations).

It is Mitchell's de...

Page 1 of 8 Next >

More on BUSINESS CYCLES AND PROFITS Introduction This...

Loading...
APA     MLA     Chicago
BUSINESS CYCLES AND PROFITS Introduction This. (1969, December 31). In LotsofEssays.com. Retrieved 00:51, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1700151.html