ECON 1 Lecture Notes - Lecture 8: Comparative Advantage, Price Level, Business Cycle
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Econ1 - introduction to economics - lecture 8: measuring nations income. The business cycle is the short-run alternation between economic downturns and economic upturns. A depression is a very deep and prolonged downturn. Recessions are periods of economic downturns when output and employment are falling. Expansions, sometimes called recoveries, are periods of economic upturns when output and employment are rising. The point at which the economy turns from expansion to recession is a business- cycle peak. The point at which the economy turns from recession to expansions is a business-cycle though. Modern macroeconomics largely came into being in response to the worst recession in history, the great depression. Although the business cycle is one of the main concerns of macroeconomics, macroeconomists are also concerned with other issues. Americans have become able to afford many more material goods over time thanks to long-run economic growth. Long-run economic growth is the sustained upward trend in the economy"s output over time.