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Economics 4 Week

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Submitted By ssykes1
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Business Cycle is the periodic but irregular up and down movement in the economic activity, measured by fluctuation in Growth GDP. The goods and services that are produce by a nations borders. An example I would like to use is vehicles. In Canada they produce 1,666,327 vehicles during the year 2006 in which that was Canada best year ever . Consumers drove off the car lots a total of 1,666,327 new cars and trucks. Compared to 2005 in which they only sold 1,601,327. In 2006 it was a total increase of 3.9%.increase. The business cycle fluctuated 2.0% in 2006 as you see by the scale posted on Department of Finance of Canada website. The vehicles added to the real GDP. With that increase it added some activity to the overall GDP for Canada that year. Another example would be government spending in the United States. Government spending can create more jobs the more jobs that are created the more consumers can use the monies from the jobs to buy more goods and services. The more goods and services purchase by the consumers the more the United States GDP will fluctuate. Look at the stimulus package signed by President Obama February 17, 2009. Some can argue that it didn’t create any jobs but one thing for sure it gave first time home buyers a tax credit $8000. in return hoping that consumers use that money to buy goods and services to further the increase of the GDP. In describing the role of the government bodies determine national polices.The bodies that determine the national polices are each nation central bank. They are U.S. Federal reserve System, Bank of Japan, and the Bank of England. They also provide array of serves for their client the governments, controlling money, credit and interest rates. Central Banks must remain independent to public pressures, accountable to the public, transparent in policy action and clear in communication with the financial

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