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University of the Faroe Islands Introductory Course in Economics
University of the Faroe Islands Introductory Course in Economics

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... countries. However, by the 1970s, both Keynesianism and social democratic capitalism were in serious crisis. According to Pollin, what factors/problems had contributed to the downfall of social democratic capitalism? Since then a new consensus in mainstream macroeconomics has emerged. It argues that ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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