Influences of Economic Slowdown

Introduction Economic slowdown, as well know as time out, is a commonality term we come across in the news. This paper discusses the effectuate of the economical slowdown to the economy in general. The question post does not indicate the cause of the economic slowdown and therefore no assumption is made to the primary cause of the economic downturn. Economic slowdown which is part of a commercial enterprise bike is inherent in market economies. It has significant effect on the livelihood of the citizens and businesses performance of a country. The hypothetical business rung with varying duration and intensity has four phases of peak, recession, trough and retrieval as shown below (Tucker 2005, p. 390). Figure 1. Hypothetical business cycle theme: http://swlearning.com/economics/tucker/eft4e/ppt_exhibit/business_cycles.ppt Economic slowdown occurs during the niche stage shown above with the real GDP declining and reaches its lowest at the Trough stage. At this stage of the business cycle un usage rises, business profits drops, and production capacity is underutilized. Generally a recession is period of at least two consecutive living quarters where the real GDP declines heading towards a Trough (Guell 2007, p. 79).

This paper shall discuss how a countrys economy is measured and the effects of the economic slowdown from the aspects of aggregate demand and supply, production capacity, inflation, employment rates and other inputs or outputs in relation to the economy. We shall also discuss how the government can attempt to react to the economic downturn through its fiscal or monetary policies quoting examples from precedent economic downturns around the world. Measurement of the Economy The economic performance of a country is typically measured though its Gross national Product (GDP) which is the market value of all final goods and serve produced during a period of time, usually a year (Tucker 2005, p. 363). However, since the charge and output of... If you want to get a full essay, show it on our website: Ordercustompaper.com

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