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EconomicsModule 2 of 8

Understanding Business Cycles

5

Concepts

0

Formulas

1

Decisions

3

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Key Concepts

5 concepts covered in this module.

Business Cycle Phases

Expansion (trough to peak), Peak, Contraction/Recession (peak to trough), Trough. GDP growth fluctuates around trend.

Credit Cycles

Expansion: easy credit, rising asset prices. Contraction: tightening, deleveraging. Credit cycles amplify business cycles.

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Decision Frameworks

1 decision frameworks to guide your analysis.

How to identify the business cycle phase?

  • Leading indicators to forecast turning points
  • Coincident indicators to confirm current phase
  • Lagging indicators to confirm phase changes already occurred

Mind Map

Visual overview of how concepts connect in this module.

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Flashcard

Business Cycle Phases

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Answer
Expansion (trough to peak), Peak, Contraction/Recession (peak to trough), Trough. GDP growth fluctuates around trend.
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Fiscal Policy