Does News About The Future Drive The Business Cycle? Good news about future productivity make agents wealthier, so they increase their consumption, as well as their leisure, reducing the labor supply. This fall in labor supply causes output to fall. Therefore, good news about tomorrow generates a recession today! How do economists predict the future
How Are Business Cycles Forecast Quizlet? Often, economic forecasting involves the use of complex mathematical models that consider many different economic indicators. “Leading indicators” are variables that tend to change before the economy as whole, which are commonly used in business cycle forecasting. How does the business cycle work quizlet? –the rise and fall of
Can Business Cycles Be Predicted? Economists cannot predict the timing of the next recession because forecasting business cycles is hard. How do you determine a business cycle? Business cycles are identified as having four distinct phases: peak, trough, contraction, and expansion. Business cycle fluctuations occur around a long-term growth trend and are usually measured by