The Economic Position On The Business Cycle - 1507 Words

he business cycle, also known as the trade cycle, is defined as â€Å"the fluctuation in economic activity that an economy experiences over a period of time† (SOURCE). Basically, the trade cycle is the alternating cyclical movement of economic conditions; phasing through periods of expansion, peaks, contractions, troughs and recoveries. Predicting the whereabouts of a nation and its economy on the trade cycle is a very important challenge; as the determination of current and forecasted economic conditions allows governments, firms and households alike to navigate the economy and prepare for future issues. In today’s article, the Australian economic position on the business cycle will be forecasted using a range of different reports, models and economic criterion. THE REPORTS Current reports, experts and articles all indicate that conditions of the global economy are currently very poor. Looking past a number of singularities and minor issues, most reports point towards three main economic issues as the cause of the weak worldwide markets; poor productivity in China, recent slumps in the value of commodities, and minimal investor confidence. This section will analyse exactly what these issues are, how they are effecting the global economy and what impact they have on Australia. Starting with China, the Motley Fool recently reported that falls in the level of productivity and economic movement in the country resulted in a worldwide reduction of foreign trade and investment. InShow MoreRelatedEssay about Divisions of The Field of Economics1407 Words   |  6 PagesEconomics is the science that permits you to assess your companys position in the business cycle as needed. Economics works hand-in-hand with corporate strategy. 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