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Industrial dynamics is the study of the means and processes through which industries change over time, through their own processes of evolution – as first analyzed by Joseph Schumpeter. It is the complementary study to that of an industry’s comparative statics, which still dominates economic analysis.
Procyclical has a different meaning in the context of economic policy. In this context, it refers to any aspect of economic policy that could magnify economic or financial fluctuations. Of course, since the effects of particular policies are often uncertain or disputed, a policy will be often procyclical, countercyclical or acyclical according ...
For example, Milton Friedman said that calling the business cycle a "cycle" is a misnomer, because of its non-cyclical nature. Friedman believed that for the most part, excluding very large supply shocks, business declines are more of a monetary phenomenon. [43] Arthur F. Burns and Wesley C. Mitchell define business cycle as a form of ...
Some investors will avoid manufacturers of fun but nonessential products like pleasure boats or automobiles, because they're worried that customers will delay or even cut such purchases in bad times.
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The cobweb model or cobweb theory is an economic model that explains why prices may be subjected to periodic fluctuations in certain types of markets.It describes cyclical supply and demand in a market where the amount produced must be chosen before prices are observed.
Tesla is an automaker, which puts it in a decidedly cyclical industry. However, as many will attest, Tesla is no ordinary car company. In addition to making some of the best-loved cars in the ...
The HP filter identifies the longer-term fluctuations as part of the growth trend while classifying the more jumpy fluctuations as part of the cyclical component. FIGURE 2. Observe the difference between this growth component and the jerkier data. Economists refer to these cyclical movements about the trend as business cycles. Figure 3 ...