Effect Of The Business Cycle Essay - 983 Words

This study uses time-series data from the CPS March data to investigate the effect of the business cycle from 2003 to 2014 on the wage differentials between females and males. The CPS is a monthly sample survey of approximately 60,000 households conducted by the Census Bureau for the Bureau of Labor Statistics, which can be considered as the primary source of labor force statistics for the population of the United States. This study also uses data from the Local Area Unemployment Statistics (LAUS) to get the state unemployment rate from 2003 to 2014. LAUS is a Federal-State cooperative effort that publishes monthly estimates of employment and unemployment for approximately 7,300 areas, including all states, countries, metropolitan areas, and cities with a population of 25,000 or more, by residence. Labor force data from the LAUS program follows the same CPS concepts and definitions used for the national labor force data. In particular, this study uses the seasonal adjustment monthly state unemployment rate, which eliminates the influences of weather, holidays, the opening and closing of schools, and other recurring seasonal events from economic time series. Since the CPS collects data through interviewing a limited amount of people, it cannot fully represent the labor market of the United States because of the sample selection bias. Also, since the CPS data is gathered by interviews, the status of survey respondents is only determined by how they respond to the survey.Show MoreRelatedEffects of Business Cycles1731 Words   |  7 PagesIntroduction In general the economy tends to experience different trends. These trends can be grouped as the business/trade cycle and may contain a boom, recession, depression and recovery. A business/trade cycle (see figure 1) is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real Gross Domestic Product (GDP) and other macroeconomic variables. Samuelson and Nordhaus (1998), defined it as ‘a swing in total national input, income and employmentRead MoreDefinition Of Liabilities1623 Words   |  7 Pageswhich are we purchase product, service or take money in credit base and we can make a promise to creditors to we can pay those money in future. Overdraft When a person or business require money this time overdraft facility can be use. In this facility money is withdrawn from a bank account. In this facility a person or business withdraw money and the available balance goes below zero. In this situation call to be overdrawn. Provision for Income Taxes All provision is making for uncertain timingRead MoreThe Impact Of Neoclassical Economics On The Economy Essay1344 Words   |  6 Pagesboth the private sector (households and privately owned businesses) and public sector (government) have an active and important role in the economy. He argued that in a capitalist economy, the government would have a direct response to where in a business cycle the economy was at any particular time—Borrow to spend in a Recession or Bust, and spend only to the level of revenue collected during a period of growth or Booms. Milton Friedman, an American economist, believed strongly in a neoclassical, one-directionalRead MoreBusiness Cycle Theories : A General Comparison1625 Words   |  7 Pages Business Cycle Theories: A General Comparison Maria Sciarrino Niagara University ECO101HON â€Æ' Business Cycle Theories: A General Comparison Throughout history, economies have experienced times of high growth and low unemployment as well as times of little or negative growth and high unemployment. It is controversial whether or not these instances occurred from regular fluctuations in the market. These alternating up and down fluctuations typically occur over several years, with each individualRead MoreMexico Business Cycle1260 Words   |  6 PagesMexico’s Business Cycle The term business cycle or economic cycle refers to the fluctuations of economic activity around its long-term growth trend. It involves shifts over time between periods of relatively rapid growth of output-recovery and prosperity, and periods of relative stagnation or decline- contraction or recession. These fluctuations are often measured using real gdp. Despite being termed cycles, these fluctuations in economic growth and decline do not follow a purely mechanicalRead MoreBusiness Cycles Macro Economic Conditions And Its Impact Towards The Country1396 Words   |  6 Pages Economics for Business Essay Question Lecture Name - Maruf Mostafa Student Name - Wastu Kankanamalage Gayani Chathurangi Maithripala Student ID – 11621711 Word Count – 1000 Introduction This essay will mainly focus, discussing business cycles in macro-economic conditions and their impact towards the country. The first part of the essay will describe different economic conditions within the macro-economic such as an economy boom and recession. The argument will bring out some definitionsRead MoreDoes Oil Price Shocks Affect Business Cycles?994 Words   |  4 PagesIt is often said that oil price shocks affect business cycles, triggering a detrimental effect on the economic activity of some countries when they rise and a favourable effect when they fall. One instance could be the U.S., where the data suggests that most recessions after 1973 have been headed by oil price increases, which is often taken as evidence of recessions being caused by oil price shocks. This brings up to question through which channels oil price shocks might be transmitted to economicRead MoreThe Cause And Effect Of Leaded Gasoline1544 Words   |  7 PagesUnfortunately, these problems did no t cease to exist on the chimerical border between the past and the present. In fact, the United States is once again faced with decisions to make regarding significant economic issues in the form of externalities and business cycles. 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Regardless of the value of every product, they all progress through a product life cycle. The phase starts with the introduction of the product and gradually moves to growth, maturity and finally be replaced by new improved products or naturally decline. Each of these stages of product life cycle requires a different marketing mix and research. The life of a product is the period over which it appeals to customers. The sales performance