Phases And Track Of The Business Cycle Economics Essay

Phases And Track Of The Business Cycle Economics Essay Business Cycle, term used by economists to designate a periodic increase and decrease in an economys production and employment. Ever since the Industrial Revolution of the 1800s, the overall level of production in industrialized capitalist countries has varied from high output and employment to low output and employment. Economists started to study business cycles because they have a significant impact on all aspects of an economy. Furthermore, the preparation of this report aims to look at the Business Cycle in general, history of business cycle and examples of long waves, phases of business cycle: recession, depression, expansion and recovery and peak and how to keep track on business cycles in order to to understand why there are ups downs in that nations economy and to learn what can be done to prevent recessions and maintain prosperity Business Cycle: a predictable long-term pattern of alternating periods of economic growth (recovery) and decline (recession), characterized by changing employment, industrial productivity, and interest rates. Also called economic cycle. History of Business Cycle: Many people believe that business cycles exist according to the theories. This has not been a permanent belief. In the 19th century, business cycles werent mentioned at all and it was spells of crises which is interrupting the smooth development of the economy. In later years, both economists and non- economists began to believe in the regularity of such crises, analyzing how they were spaced apart and associated with changing economic structures. Obviously, not every economic cycle operates on the same yardstick. The following classification, originally conjured up by Schumpeter (1939), defines a few of them by their duration (trough to trough or peak to peak) for examples: Seasonal cycles within a year Kitchin cycles 3 years Juglar cycles 9-10 years Kuznets cycles 15-20 years Kondratiev cycles 48-60 years Also, Schumpeter labeled the four-phases of a cycle which are: boom, recession, depression and recovery. Boom, is a rise which lasts until the peak is reached; a recession is the drop from the peak back to the mean; a depression is the slide from the mean down to the trough and a recovery is the rise from the trough back up to the mean. Despite the meanings, these phases cycle are moved up into another boom and thus the beginning of another four-phase cycle. Additionally, if any cycle of whatever duration can be described as going through these four phases, the fluctuations cannot really be described as cycles. Theorists of business cycle believe that the economy goes through like waves of economic activity. However, it causes the economy to exhibit this type of activity has been a source of many disruptive, as a result it become far imaginative and exercises. There are many empirical facts that all business cycle theorists should be acquainted. To begin with, empirical evidence shows that throughout the 19th Century, the price level oscillated heavily while output was much less subject to fluctuations. Thus, the early analysis of cycles was based precisely on their definition as swings in price levels and not output. Nevertheless, during the 20th Century there has normally been a constant upward trend in prices by saving few exceptions. Prices varied, of course, but only around this upward trend. Output, however, oscillated heavily in the 20th century thus what were defined as cyclical were movements in output like: in recessions and depressions. Also, output would increase in the recovery and boom. That means the cycle or even a crisis as a movement in output is a rather recent phenomenon. Lastly, Wesley C.Mitchell dedicated much of his life to measuring and analyzing business cycles, thus it is no surprise that Mitchells NBER has maintained the most widely accepted historical record of business cycles in the United States. Long Waves The NBER does not record Kondratiev Cycles (or long waves) and they dont believe these cycles exist. Even so, these four Kondratiev waves have been identified by going through four phases of boom, recession, depression and recovery (the dates and labels are from Kuznets, 1940) such as: (1) The Industrial Revolution (1787-1842) is the most famous Kondratiev wave: the boom began in about 1787 and turned into a recession at the beginning of the Napoleonic age in 1801 and, in 1814, deepened into a depression. The depression lasted until about 1827 after which there was a recovery until 1842. As is obvious, this Kondratiev rode on the development of textile, iron and other steam-powered industries. (2) The Bourgeois Kondratiev (1843-1897): After 1842, the boom reemerged and a new Kondratiev wave began this one as a result of the railroadization in Northern Europe and America and the accompanying expansion in the coal and iron industries. The boom ended approximately in 1857 when it turned into a recession. The recession turned into a depression into 1870, which lasted until about 1885. The recovery began after that and lasted until 1897. (3) The Neo-Mercantilist Kondratiev (1898-1950?): The boom began about 1898 with the expansion of electric power and the automobile industry and lasted until about 1911. The recession which followed turned into depression in about 1925 which lasted until around 1935. We can assume that this third wave entered into a recovery immediately afterwards which one might suspect lasted until around 1950. (4) The Fourth Kondratiev (1950 2010?). There has been much debate among believers on the dating the Fourth Wave largely because of the confusions generated by the low fluctuation in price levels and the issue of Keynesian policies and hence this debate is yet to be resolved. Perhaps the most acceptable set of dates is that the boom began around 1950 and lasted until about 1974 wherein recession set in. When (and if) this recession fell into its depression phase may be more difficult to ascertain (c.1981?), but what has been more or less agreed upon is that 1992 (or thereabouts) the recovery began and has been projected to give way to a boom and thus a new Kondratiev wave around 2010 or so. The Phases Of The Business Cycle Economists have many different ways of labeling the business cycle. The business cycle may be defined as the changes that occur to the real GDP because of alternating periods of expansion and contraction. The phases are: 1. Recession. A decline in the real GDP occurs for at least two or more quarters. During a recession, business people spend less than they once did. As a result, sales are failing. Businesses do what they can to reduce their spending. They lay off workers, buy less merchandise, and postpone plans to expand. When this happens, business suppliers do what they can to protect themselves. They too lay off workers and reduce spending. Since workers earn less, they spend less, and business income and profits decline still more. Businesses spend even less than before and lay off still more workers. The economy continues to slide. 2. Low Point or Depression. State of the economy where there are large unemployment rates, a decline in annual income, and overproduction. The time of the the real GDP stops there decline and starts expanding to the lowest point. Sooner or later, the recession will reach the bottom of the business cycle. How long the cycle will remain at this low point varies from a matter of weeks to many months. During some depressions, such as the one in the 1930s, the low point has lasted for years. 3. Expansion and Recovery. A period in which the real GDP grows; recovery from a recession. When business begins to improve a bit, firms will hire a few more workers and increase their orders of materials from their suppliers. Increased orders lead other firms to increase production and rehire workers. More employment leads to more consumer spending, further business activity, and still more jobs. Economists describe this upturn in the business cycle as a period of expansion and recovery. 4. Peak. The point of real GDP stops increasing and begins its decline; the highest point. At the top, or peak, of the business cycle, business expansion ends its upward climb. Employment, consumer spending, and production hit their highest levels. A peak, like a depression, can last for a short or long period of time. When the peak lasts for a long time, we are in a period of prosperity. One of the dangers of peak periods is that of inflation. During periods of inflation, prices rise and the value of money declines. Inflation is more of a threat during peak periods because employment and earnings are at high levels. With more money in their pockets, people are willing to spend more than before. In this way, demand is increased and prices rise. Graphically the phases would look like so: How Do Economists Keep Track Of The Business Cycle? For many years, economists have tried to identify why there are ups and downs in that nations economy. They want to learn what can be done to prevent recessions and maintain prosperity. Therefore, they ask the following questions which are: (1) in what phase of the business cycle is our economy at the present time? And (2) Where is the business cycle heading? On the other hand, economists believe that there are five causes of the business cycle. The first cause is changes in capital expenditures. Businesses have expectations of sales growth, when the economy is strong. They invest heavily in capital goods. Although, businesses may decide that they have expanded to their limit, so they begin to pull back on their capital investments and cause an eventual recession. The second cause of the business cycle is inventory adjustments. At the first sign of an economy reaching its peak, there are some businesses that cut back their inventories and then build them back up again at the first sign of a trough. Both actions cause the real GDP to fluctuate. Innovation and imitation are the third causes of the business cycle. Innovations include new products, new inventions, or a new way of performing a task. When a business innovates, it often gains an edge on its competitors because its costs decrease or its sales increase. Whatever the case, profits increase and the business grows. If other business in the same industry wants to keep up, they then copy what the innovator has done (imitation) or they come up with something better. While, Imitation companies usually invest heavily and an investment boom follows, the innovation spreads to another industry and the situation changes. Additional investments are unnecessary and economic activity may slow. The fourth causes of the business cycle are the credit and loan policies of commercial banking. When easy money policies are in effect, interest rates are low and loans are easy to get. They encourage the private sector to borrow and invest, thus stimulating the economy. Eventually the increased demand for loans causes the interest rates to rise, which discourage new borrowers. The economy keeps declining until interest rates fall and the business cycle begins over again. So it wont be slow down and decline. The final cause of the business cycle is external shocks. Shocks such as increases in oil prices, wars, and international conflict, have the potential to either drive the economy up, or down. The economy may benefit when a new supply of natural resources is discovered. Such was the case with Great Britain in the 1970s when an oil field was discovered off its coast in the North Sea. The British economy of course profited seeing that world oil prices were at an all time high, but the high prices hurt the United States at the same time. Conclusion The central idea of business-cycle, that the economy has regular and periodic wavesa cyclelasting for several years, has few adherents today. Perhaps such cycles never existed, or perhaps they once did but no longer do because the government now plays a large and active role in the economy. However, the business-cycle approach remains useful because it is an easy way to introduce a number of macroeconomic topics, including the adjustment process that remains central in macroeconomics. It also provides a transition from our examination of monetary theories to an introduction to Keynesian economics, a very different way of viewing the macroeconomic.

In what ways is Educating Rita effective as a play? :: English Literature

In what ways is Educating Rita effective as a play? 'Educating Rita" is dramatically effective in many ways. It is also recognised as an exceptional play; it was voted "Best comedy of the year" when performed by the Royal Shakespeare Company in 1980, and just three years after release, it had become the fourth most popular play in Britain. There are obviously factors which make it so effective, and I intend to explore these factors. Throughout the play, there are only two characters: this is known as a two-hander. Other characters are only mentioned in the play, but in the film have been cast as parts. It worked well for the film, but I think it lost the closeness which plays such an important part in the theatre. Some people would find this to be tedious, but I think it adds to the intensity and intimacy between the audience and the characters. There is a focus on the two characters which means that the audience can appreciate the relationship between Rita and Frank which is emphasised more than it would be with other characters, and would notice any subtle changes that occur in the play. For example, when Rita starts to use the correct form of speech for talking about literature and uses a higher standard of English. You can see this in Act I, Scene 4 when Frank and Rita were talking about her "Peer Gynt" essay where her response was "Do it on the radio." Frank could not believe what she had written as her entire essay, and in her defense Rita says, "I didn't have much time this week, so I sort of, y'know, encapsulated all me ideas in one line." The audience familiarise with Frank and Rita and we can see more closely what they are feeling and thinking because we know them better. We understand that Rita feels that she is stuck in the lower class and she wants to better herself by "changing from the inside" and taking Literature classes. Frank is a tired, middle-aged man and he can see that the world is passing by but he cannot be bothered to do anything about it. He drinks to try and suppress this feeling: "Life is such a rich and frantic whirl that I need the drink to help me step delicately through it." Both characters are stuck in a rut, but Rita wants to change her situation and is making the effort to achieve that change. We can also sympathise with Rita and Frank because of the closeness between audience and characters, and so this can make otherwise trivial circumstances seem more significant, such as when Rita

Dead Poet Society Essay

Is living a crime? Is choice unacceptable? Is suicide typical? Reading this is so simple but going through it is much harder than we think. Forgetting your best friend who suicided, having your close relative killed and been alone was Charlie’s life. â€Å"The perk of being a wallflower† directed by Stephen Chbosky is an astonishing film which involves youngster entering the world of adulthood. Beginning a new year of high school here Charlie finally befriends Sam and Patrick and through this we explore the themes of self-realisation and loneliness. Self-realisation and loneliness is conveyed in both films; Directed by Peter Weir Dead Poet society is a story of a teacher called Mr Keating who makes his students releases the ability they have in them. The film â€Å"Perk of being a wallflower† definitely reinforces the themes in â€Å"Dead poet Society†. Loneliness is deeply attached and expressed early in Charlie’s life. It is shown by him not participating in any class activities. The camera angel that supports this statement is an eye-level shot where Charlie is sitting in class backed down on his chair. This symbolises that he is too afraid to speak out. The body language is dull with a lower self-esteem. Similarly, in Dead Poet Society Todd a shy and insecure guy who is too afraid to come out of his shell. The camera shot used is close-up where Todd’s facial expression is conveyed by tension and fear. So, therefore both films definitely share a similar theme. â€Å"Things change. And friends leave. Life doesn’t stop for anybody. † Being intensely devoted to his past Charlie stopped realising who he really is. Every step he took he remembered the past, and that past has stopped his life in one motion; stress and alone. Fortunately, with help from his friend Sam he realises that life is full of happiness and freedom. The Camera Angle used is Medium shot where Charlie is standing on the truck bed, with his hands open, he learns that he can go on with life without being scared, because he is more than a wallflower. Furthermore, Self-realisation in Dead Poet Society is shown by Todd at the end of the film where he is confident and fearless. He seizes the day by standing on his desk as a symbol of his respect to Mr Keating. The camera Angle used is low angle shot of Todd which makes him look powerful and full of dignity. Confident, happiness and self-realisation taught both Todd and Charlie that life keeps going so. So, therefore, again the perk of being a wallflower has expressed similar themes as Dead poet society. To conclude, both films had similarities and differences but overall the same themes; Themes of self-realisation and loneliness. The perk of being a wallflower and Dead poet society show us lives of teenagers that are sometimes unseen and the way they overcome each obstacle. So, what would you do if you were in this situation? Because in life people like Mr Keating or Sam aren’t always there. So my friends seize the day your own way.

The Death Penalty Should Be Legal - 1554 Words

In America, when someone is convicted of murder, they are put on trial to receive the death penalty. Some say it is what they deserve, while others say that it is a â€Å"cruel and unusual†punishment. States, such as New Jersey, have already banned the penalty, but some states are still pending on whether to have the penalty or to follow New Jersey’s path . If you were to go and ask people why they are against the death penalty, they would say it is because it goes against morality, constitutionality, and the irrevocable mistakes of putting the wrong person to death. When people say that the morality of the death penalty in America has less to do with whether those sentenced of vicious wrongdoing should die than with whether state and governments should be involved in their killing. The legacy of racial politically-sanctioned racial segregation, racial inclination, and ethnic separation is unavoidably apparent in the organization of the death penalty in America. Capital punishments are forced in a criminal equity framework that treats you better in the event that you are rich than if you are poor. This is an indecent condition that makes dismissing capital punishment on good grounds solid as well as important for the individuals who decline to acknowledge unequal or unjustifiable organization of discipline. On the other hand, crimes of assault, torment, injustice, abduction, homicide and robbery turn on an ethical code that escapes apodictic evidence by masterShow MoreRelatedThe Death Penalty Should Not Be Legal1261 Words   |  6 PagesThe Death Penalty Should Not Be Legal The death penalty should not be legal because of two major reasonings. These reasons are, the death penalty takes the lives of many innocent people, and it also costs too much. The death penalty should not be legal because innocent people are wrongly convicted and killed. According to the Death Penalty Information Center, it puts innocent lives at risk. At least 4.1% of all defendants sentenced to death in the United States in the modern era are innocent (DeathRead MoreThe Death Penalty Should Be Legal1457 Words   |  6 PagesThe death penalty can be traced all the way to biblical times when people were executed for many reasons such as: for not believing in their god(s), choosing to interact in sexual conduct while unmarried, stealing, murder, etc. The methods of execution back in those times were to either: stone, hang, slay, crucify, and burn not only the offender who committed the crime, but if he or she had a family, the entire family was executed with them as a warning to the people of their tribe or city to notRead MoreShould The Death Penalty Be Legal?985 Words   |  4 PagesBen Goble Mr. Newman English Comp. November 4, 2015 Should the Death Penalty be Legal? The death penalty, also called capital punishment, has been a topic of debate among the public for many years, gaining very little ground in changing the legality of it one way or the other. The topic is very controversial because many people feel that it is wrong to take the life of another person. On the other hand a very comparable number of people push for the legality of capital punishment for condemningRead MoreThe Death Penalty Should Not Be Legal1004 Words   |  5 Pagesabolish death penalty† (Bosman). In thirty-one states, federal government and military legal system, the death penalty is lawful. Even the Supreme Court has been changed direction of capital punishment. One day, it could be a legal and illegal by the Supreme Court. Most of European countries ban the death penalty except Belarus that if a criminal involve international terrorism, murdered, inhumane crime and the criminal receives death penalty. Nowadays, banned the death penalty becomeRead MoreDeath Penalty Should Be Legal943 Words   |  4 PagesDo you think that death penalty will give justice for the innocent lives? The death penalty continues to be an issue of controversy in the whole world because people have different beliefs for giving justice to the innocents. For some people, they want it legal because death penalty will give justice for the innocent victims and a form of vengeance to the criminals. On the flipside, other people don’t agree with it because a lot of innocents are putting into death. These people believe that it isRead MoreThe Death Penalty Should Not Be Legal1573 Words   |  7 PagesThere are many legal issues that come along with the death penalty. Ratified on December 15, 1791, The United States Bill of Rights states in its eight amendment, â€Å"Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.† (8th Amendment to the Constitutio n). The Supreme Court stated during the 1958 case of Trop v. Dulles, that the 8th amendment must draw its meaning from the evolving standards of decency that mark the progress of a maturingRead MoreThe Death Penalty Should Be Legal1555 Words   |  7 Pageshave on a person? The death penalty, or capital punishment, is one of the most debated topics in America. It has been used for centuries, but many claim it to be barbaric, and want the practice to end all together. The death penalty should only be used in cases where there is absolute evidence that the criminal is guilty, because life in prison can be an alternative, there are many flaws in the justice system, and it can be a cruel and unusual punishment. The death penalty is legal in 32 states, theRead MoreThe Death Penalty Should Not Be Legal1553 Words   |  7 Pagescalled problems with our system of justice is the death penalty. Capital punishment in this country seems to have its pros and cons. There are more issues and complications with being sentenced to death, while the positives are minuscule. The death penalty should not be allowed in the United States, and there are many reasons for this argument. The death penalty has caused controversy in the country since it became popular. 31 states use the death penalty and is also used by the military. Its use isRead MoreThe Death Penalty Should Be Legal Essay2884 Words   |  12 Pagesis the death penalty - should it be legalized across the 50 states or be declared unconstitutional? Some believe the death penalty is a better option for those who deserve the highest form of punishment available. However, others argue capital punishment is a waste of resources and should be brought to an end. Therefore, while many believe the death penalty should be legalized throughout the United States because it offers a higher form of punishment, others believe the death penalty should be repealedRead MoreShould The Death Penalty Be Legal?1638 Words   |  7 PagesShould the death penalty be legal or be abolished? Laws and regulations vary from nation to nation. Attitudes towards the capitalism, as well, vary from person to person. The death penalty, it seems, has become more debatable topic than ever. Although some people think capital punishment, just like death penalty, is a inhuman act which against human s rights for life and it is too cruel to give the criminals another chance to live a new life. I suppose capital punishment is still an effective