Answer to Question #292604 in Macroeconomics for Ali

Question

what determines the cyclical behavior of output and employment? what causes recessions?

Answer 1

The cyclic behavior of any economy is noticed in the financial cycles in such a way that there are systematic patterns that are normally occasioned by the growth of the credits and the process of the assets. It is part of the economic rise and economic fall that occurs over time. When the cyclic output occurs, it causes huge unemployment that depends fully on the length of the economic depression caused by the recession.