Business Cycle and Monetarim tools in Economy
What is Business Cycle tools in Economy? In Economics, a business cycle refers to a series of stages in an economy as it expands and contracts. Often referred to as a “trade cycle” or “economic cycle,” the process constantly repeats, measuring the rise and fall of Gross Domestic Product (GDP) over varying periods of time in a financial year. Business cycles are universal across all countries that have a capitalistic economy. All such economies will face natural periods of growth and decline, though not all at the same time - so the periods in which they are measured can differ between nations. Having an understanding of the different phases of a business cycle can help individuals, businesses and even governments make appropriate decisions around finance and policy to best support their economies. What is Monetarism ? Monetarism is a macroeconomic theory which argues that governments can maintain economic stability by targeting the growth rate of money supply. In simpler terms, it...