Ashford ECO 406: Week 2 – DQ 1 – The Business Cycle
1st Posting Due by Day 3. The Business Cycle. What part of the business cycle is the U.S. economy currently in? Evaluate your answer by using three financial indicators. Analyze the trends and forecast the direction of the business cycle in the next six months using your economic indicators. Respond to at least two of your classmates’ postings.
The Business Cycle
Business cycle has got four phases. The first phase is contraction. At this phase, the economy switches to a higher proportion of cash and bonds. The second phase is that of trough. At this phase, the economy tends to adds more commodities and stocks whose prices fall when the economy contracts. The third phase is the expansion phase. At this phase, economy keeps switching from cash and bonds to stocks and commodities. The..