Page 52 - FINAL CFA I SLIDES JUNE 2019 DAY 5
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Session Unit 4:
17. Understanding Business Cycles, p. 1
LOS 17.b: Describe how resource use, housing sector activity, and external trade sector
activity vary as an economy moves through the business cycle., p.84
Resource Use Fluctuations, p85
Towards peak expansion, Inventory to Sales Ratio Up!
• Production cut back then kicks in contraction!
• Sweat utilise labour/physical capital more (O/T/machines)
Towards trough, Inventory to Sales Ratio down!
Production then rebuilds to normal levels!
Less sweat utilise labour/less maintenance etc
