Business Cycles Macro Economic Conditions And Its Impact...

Economics for Business Essay Question Lecture Name - Maruf Mostafa Student Name - Wastu Kankanamalage Gayani Chathurangi Maithripala Student ID – 11621711 Word Count – 1000 Introduction This essay will mainly focus, discussing business cycles in macro-economic conditions and their impact towards the country. The first part of the essay will describe different economic conditions within the macro-economic such as an economy boom and recession. The argument will bring out some definitions to provide more depth to the discussion. The latter part of the essay will illustrate the aggregate demand and aggregate supply model to demonstrate the relationship between gross domestic product (GDP) and the price level by using different†¦show more content†¦The positive swings or the high growth in the economic activities is called contractions and the down swings and declining growth in the economic activities is called a recession. According to the National Bureau of Economic Research, Recession is a critical decline in economic activity over the period of time and it will be evident through economic performance activities such as GDP, income, employment, industrial production, and wholesale-retail sales. (National Bureau of Economic Research) Aggregate demand and Aggregate supply Model The aggregate demand and aggregate supply models are related to describe macroeconomics and referred to as the AS/AD model. This model is a useful tool to evaluate the gross domestic product (GDP) against the price level and the AS/AD model is used in this discussion to explain business cycles including, recession, stable economy and contractions (Hess, P. N. 2013) The supply curve (AS) curve refers to the quantity of output supplied by the business sector to the price of output while the demand curve (AD curve) refers to the quantity of output demanded by the various sectors of the economy. (DeLong, J. B. 2003) The quantity of real GDP is calculated based on three key inputs such as labour (L), capital (K) and technology (T) within the economy (Hubbard 2012) There are twoShow MoreRelatedMarketing Micro and Macro Environmental Factors1669 Words   |  7 PagesMacro and micro environments both fall into the categories of environmental scanning. The general scope of environmental scanning is that it is a component of global environmental analysis. While analyses are typically carried out on the macro environment, the micro environment still has an important role to play. In summary, the macro environment is involved with the industries, companies, markets, clients and competitors, while the micro environment can be represented by the suppliers, competitorsRead MoreMacro Economy Elements1258 Words   |  6 Pages1.0 MACRO ENVIRONMENT ELEMENTS There are many factors in the macro-environment that will effect the decisions of the managers of any organization. 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