Business Cycle Concepts and Indicators

The video tutorial introduces business cycles, explaining their phases, including peaks, troughs, contractions, and expansions. It covers how to measure business cycles through length and amplitude, and describes different types of cycles like Kitchin, Juglar, Kuznets, and Kondratiev. The video also discusses endogenous and exogenous explanations for business cycles and highlights economic indicators used for forecasting, such as leading, lagging, coincident, and composite indicators.

What is the highest point in a business cycle called?

• Trough

• Peak

• Expansion

• Contraction

What is the term for the phase when the economy moves from a peak to a trough?

• Expansion

• Prosperity

• Recovery

• Contraction

How is the length of a business cycle measured?

• From expansion to contraction

• From peak to trough

• From peak to peak or trough to trough

• From trough to peak

What is the amplitude of a business cycle?

• The distance from peak to peak

• The duration of a cycle

• The economic growth rate

• The distance from peak to trough

Which business cycle is the shortest in duration?

• Juglar

• Kitchin

• Kondratiev

• Kuznets

What causes the Kondratiev business cycle?

• Changes in stock

• Changes in fixed capital investments

• Changes in innovation and technology

• Changes in construction

What does the endogenous explanation of business cycles focus on?

• Market forces

• Weather conditions

• External factors

• Technological changes

Which explanation of business cycles is also known as the monetarist explanation?

• Kitchin

• Kondratiev

• Exogenous

• Endogenous

What type of economic indicator changes before an economic activity?

• Lagging

• Coincident

• Leading

• Composite

What is a composite economic indicator?

• An indicator that changes after economic activity

• An indicator that changes at the same time as economic activity

• A combination of different indicators into a single value

• An indicator that predicts future economic activity