Tag Archives | Business Cycle

Simultaneous Operation of the Multiplier Business Cycles

Show that the simultaneous operation of the multiplier and accelerator can cause income Auctions. Business conditions never remain unchanged. Prosperity may be followed by depression or a crash. Economic expansion yields place to recession, with consequent fall in national output or GNP, employment, and real incomes. Prices and profits may fall. People are thrown out of jobs and idle capacity [...]

By |2017-01-13T05:55:18+05:30January 13, 2017|Business Cycles|Comments Off on Simultaneous Operation of the Multiplier Business Cycles

Quick Notes on Super-Multiplier | Business Cycle

The below mentioned article provides a note on super-multiplier. The term 'super-multiplier' was first coined by J.R. Hicks in his business cycle theory. The object was to show the relationship between change in induced investment and the corresponding change in income. To be more specific, it indicates the ratio between the two changes, i.e., in investment and in equilibrium output. [...]

By |2017-01-13T05:55:18+05:30January 13, 2017|Business Cycles|Comments Off on Quick Notes on Super-Multiplier | Business Cycle

Over-Investment Theory of Business Cycle | Firm

In this article we will discuss about the over-investment theory of business cycle. Also learn about the criticisms of the theory. A major variant of the pure monetary theory of the business cycle is the over-investment theory developed by Prof. V. Hayek. According to him, the over-issue of bank credit at artificially low interest rates is responsible for causing fluctuations [...]

By |2017-01-13T05:55:18+05:30January 13, 2017|Business Cycle|Comments Off on Over-Investment Theory of Business Cycle | Firm
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