The Business Cycle
In This Chapter
- Long-run growth and the business cycle
- How the business cycle creates expansions and recessions in the economy
- Unemployment and inflation in the business cycle
- The aggregate supply and demand mode
The rise of capitalism, characterized by private ownership of the means of production and the market economy, has generated long-term growth. Technology, improved productivity, entrepreneurialism, and the profit motive have been the drivers of economic progress over the past few centuries. Populations expanded as a result of technological improvements in agriculture and with inventions that enabled one ...