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Determine the Business Cycle and Classical Economists
Business Cycle: The business cycle is the fluctuations in the rate of economic growth that take place in the economy. The peak of the business cycle is usually referred to as a boom, and the trough as a recession or depression.
Classical Economists: Classical theories revolved mostly around the role of markets in the economy. If markets worked freely and nothing stopped their rapid clearing then the economy would prosper.
GDP Price Level At the equilibrium level of income aggregate spending in the economy equals aggregate output. All along, we have assumed that the general price level remains un
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What barriers to economic growth can be explained using the Harrod-Domar model? Definition and outline of the Harrod-Domar model; growth in national income = savings ratio over
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