MBAE-103: Managerial Economics – Unit 12
Objectives: explain the concept and features of Business cycle; identify the various phases of Business cycle; distinguish between the monetary and real factors behind business cycle; and distinguish between the leading, lagging and coincident indicators.
Materials:
The relevant material is available here.
Questions:
- Explain in brief how multiplier and accelerator interact to generate business cycles.
- Explain the real business cycle theory.
- What are the criteria that form the basis for selection of a business cycle indicator?
- What is the importance of a lagging indicator?
- What are the different phases of business cycle?