The booms and the busts of the business cycle – Introduction to AD – AS models

The business cycle is an economic phenomenon which describes changes in the level of economic output compared to a long run average. A simple set of data illustrating the business cycle is shown below. The level of Real GDP in most countries increased by a positive rate each year from 2000 - 2008, before the … Continue reading The booms and the busts of the business cycle – Introduction to AD – AS models