Page 113 - F1 - AB Integrated Workbook STUDENT 2018-19
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External analysis – economic factors




               8.4 Trade cycles

               Some economists argue that another objective of governments should be to smooth
               out trade cycles to avoid 'boom and bust' years.



                  Output

                                                                  Peak                        Trend



                                  Peak                                        Trough




                                                Trough





                                                                                              Time
                                     Recession            Expansion













































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