In conclusion this essay has discussed the four phases of a business cycle, showing how an economy of a country (Tanzania) moves through the four stages over a period of time. Overall, Tanzania’s economy has been stable since the country redeemed its independence from British rule However according to president Kikwete (2011), the government has come up with a 5-year government plan in order to ameliorate the country’s economy to a middle income country, with an average GDP growth rate of 8% for next 5 years and targeted growth rate of 10% from 2016 to 2025.
In conclusion, this paper has discussed a number of theories which explain business cycles which have included real business cycle theory, Keynesian business cycle theory, and Australian business cycle theory. Four business phases which characterize a business cycle have been discussed which include expansion, peak, trough and contraction. Forecasting on the other hand has been seen to involve methods such as Inventory control/ production planning , Investment policy and Economic policy. Inflation, an increase in credit as well as the amount of money in an economy as compared to the goods and services in supply has been noted to lead to increase in unemployment.
Furthermore, the country has taken various measures to improve its growth, as stated by Business Development Gateway (2012). For example, in the year 2010, there had been more development under private sectors, which benefit the investors, and allow investment to occur in the country, which would bring about employment opportunities. Overall, since the beginning of the twenty-first century Tanzania has experienced a great improvement in terms of the GDP growth rate. (Campbell and Christie 2010) Recession is the period between boom and depression.
The economy will boom and enjoy an expansion. Eventually, as time passes and prices become more flexible, prices are also likely to rise as a result of the increased spending. Cyclical Impact: Durables and Nondurables Although the business cycle is felt everywhere in the economy, it affects different segments in different ways and to different degrees. Firms and industries producing capital goods (for example, housing, commercial buildings, heavy equipment, and farm implements) and consumer durables (for example, automobiles, personal computers, and refrigerators) are affected most by the business cycle.
Revenue Cycle | Business Articles & Essays
It's even the reason companies in industries from autos to airlines are trying to move into the business of finance themselves. American companies across every sector today earn five times the revenue from financial activities—investing, hedging, tax optimizing and offering financial services, for example—that they did before 1980. Traditional hedging by energy and transport firms, for example, has been overtaken by profit-boosting speculation in oil futures, a shift that actually undermines their core business by creating more price volatility. Big tech companies have begun underwriting corporate bonds the way Goldman Sachs does. And top M.B.A. programs would likely encourage them to do just that; finance has become the center of all business education.
Business Cycle Essay Draw & label the..
Although expansionary monetary policy has the ability to reduce the length and severity of an economic recession, there is no guarantee it can do so. Lower interest rates, for example, may not stimulate consumer spending if consumers have little confidence in the economy. They are unlikely to increase their spending if they believe their jobs are at risk because of a sluggish economy. Businesses may be reluctant to invest in new facilities and equipment for expanded operations if the economy is in a recession. Finally, banks may be unwilling to increase their lending during a recession. Time Frame
The business cycle is unavoidable because, in part, it is the economical representation of a volatile element: human psychology. In the example above, consumers are predictable. But we all know consumer preferences and their senses of well-being change, sometimes overnight. The new fashion, the hot stock, the trendy social cause or diet can change instantly. Sentiment about a nation’s political and economic health shifts the day following a big news story. What’s trendy and positive one day, can literally turn to passй and negative the next. To an extent, capitalism breeds such behaviors, as its tenets support constant innovation by producers and freedom of choice by consumers.
Business Cycle - Univ Essay Writing
This essay shows that this applicant is dedicated not just to helping people, but to academics, learning, and math. His tutoring does not make us believe his sincerity; the thoughtfulness and detail with which he describes it do. He has put obvious time into developing an effective method of teaching. The writer shows that he is result-oriented by measuring his success in terms of real numbers and percentage increases. Someone who applies such standards of accountability to his extracurricular life is sure to bring the same standards to school and business.