Wednesday, January 5, 2011

Post 17 - Last Post for Macro Economics

Strength: Consistent, always has a peak, recovers after recession
Weakness: recession always follows a peak

Strength: Allows room for expansion
Weakness: very steap recession, long while to expand

Strength: Predictable, similar to other graphs, Peaks and troughs equal

Graph 3 represents the best business cycle to me based off the fact that everything is equal. The trough in an economy is no more or no less than that of its peak. Being able to keep an economy in such window would allow the economy to remain more stable. It is alot easier to deal with what you know is coming, rather than gambling on the future.

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