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Lecture 14 (Business cycle (Graph (Understand the graph (Expenson, Peak,…
Lecture 14
Business cycle
Concept
Graph
Understand the graph
Expenson
Peak
Recession
Recovery
Trough
Business rule
Business cycle and possible growth
growth depend on resource of country
Rule of growth
stable the previous year growth
if not maintain so growth is not sustain
Export and business cycle
Example of pakistan
If export high
Quality go down
Other things colleps
Because of bad infrastructure
more factory
Requirement of human
produce more product
Example
Pakistan railway
Business cycle and growth
when expend so we growth
We are growing towods peak
We not grow in all sectors
Some time in agriculture
Some time in Service
Some time in manufacturing
Some time growth not good
Fall of business cycle
It is dengerious
Difficult to control
Better is no growth the fall
Number of growth not metter
Quality of growth metter
When graph go down
Country go down
Best position on business cycle
Peak of the graph
Growth and Inflation
Higher the growth
Higher the inflation
Lower the growth
Lower the inflation
Rescission
Two types
Low growth rate
Because we did not stable
No growth rate
Every thing will damage
Not possible to control
at the trough side of graph
Required new development model
Effectiveness of business cycle
Required development in all sector
Example
Bank and telecom sector
Required to evaluate old development
Prepared by:
Azaz Ahmed (1839124)