Explain economic fluctuations and how shifts in either aggregate demand
Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions using the model of aggregate demand and aggregate supply.
In some years normal growth does not occur, indicating a recession. A recession is a period of declining real incomes, and rising. A depression is a severe recession.
Economic fluctuations are irregular and unpredictable. Fluctuations in the economy are often called the business cycle. These fluctuations do not follow regular or easily predictable patterns…………………..