Using the illustration of the business cycle in figure 1, answer the following q
ID: 1136284 • Letter: U
Question
Using the illustration of the business cycle in figure 1, answer the following question:
Which stage of the business cycle do you think your country's economy is in right now? (You can choose any country you wish.)
Your answer needs to clearly state the stage, approximate location on the economic activity line, and reasoning behind your determination. (see example below.) Keep in mind that you do not have to back up your assertions with official data, but you are welcome to give it a try. Simple and straightforward reasoning from your perspective is all that is needed. Also, do you feel the beer game, as depicted in the video, represented any part of the 2008 Global Recession?
Stage 1Stage 2 Stage 3 Stage 4 Stage 1 Trough to Recovery to Expansion to Peak toTrough to Recovery Expansion Pea Contraction Recovery Mar 2001 Trough to Peak Trough from Previous Peak Economic Activity Business Cycle Mar 1991I I Nov 2001 TimeExplanation / Answer
Taking the case of USA we can say that the economy is currently in the stage of Expansion to Peak (stage 3). The economy experienced recessionary phase during 2007 -2009 post which it started to recover from the trough / recession. Now during these years it is nearing to its peak given the rise in the economic output, higher employment numbers, stronger macroeconomic parameters. It is expected that the economy will soon peak and then move towards the peak to contraction phase.
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