Economic Business Cycles
Q1a) Compare and explain the business cycle for any three of the countries listed in table 1.1 (Overseas Economic Statistics) from 1993 to 2001. Calculate annual percentage changes and use graphs in your answer.The three countries that I have chosen for my research are as following: U.S.A, Japan, and the Euro Area. In the table and graph below you can see the annual % of growth these three countries have experienced since the year 1993. When we closely look at this data and analyze every country separately we can come to an understanding of what phase of the business cycle that certain country is experiencing. U.S.A: As you can see from the table and graph below the U.S.A have experience a sustained level of economic growth all through these 8 years with the exception of 2001 and 1995. In these two years the U.S.A have experienced somewhat of a concretionary stage, which is when GDP (Annual Growth) increases at a slower rate than the year previously. The 1% drop in 1995 shouldn't have been a big worry for the government but the 4.5% drop in 2001 would have been somewhat of a worry as it followed the Asian economic crisis of the year before. But Luckily in both cases the U.S.A were able to come out of these Co
EURO AREA: The Euro Area has experienced economic between a low of 1. A have experienced the most amount annual economic growth than the other two countries in this table. There is no real trend during these years, with economy going up and down from year to year. Australia: Australia has gone against world trends and recorded a healthy 1. So as you can see the business cycle theory together with aggregate demand have a great influence in the lowering and rise of our national interest rates by the Reserve Bank of Australia. From the data provided in the articles it's clear to see that Australia is experiencing an expansionary phase, but at the time the government is worried that Australia will follow world trends and slip in a contractionary phase. The determinants for this healthy increase are as following:· Retail spending rose by 1. Identify and discuss any differences from business cycle theory.
Common topics in this essay:
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Annual Growth,
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Australia Consumer,
USA Japan,
Japan Euro,
JAPAN Japan,
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aggregate demand,
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movement rates,
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