TUGAS TUTORIAL KE-1

BAHASA INGGRIS NIAGA (ADBI4201)

PROGRAM STUDI AKUTANSI

NAMA: ADINDA TINEZIA PUTRI NAINGGOLAN

NIM : 030894936

topics :

Understanding the Business Cycle is very helpful for business people to operate their business
successfully.

"business cycle" (or economic cycle or boom-bust cycle) refers to economic fluctuations in production,
trade and general economic activity. From a conceptual perspective, the business cycle is the up and
down movements of the level of GDP (gross domestic product) and refers to periods of expansion and
contraction at the level of economic activity (business fluctuations) around long-term growth trends.

Fluctuations in the business cycle occur around long-term growth trends and are usually measured in
terms of growth rates for real gross domestic product. "Significant decline in economic activity that
spreads throughout the economy, lasting more than a few months, is usually seen in real GDP, real
income, employment, industrial production. "This differs significantly from the often quoted definition
of a recession marked by a two-quarter decline in real GDP. If the economy does not start developing
again then the economy can be considered in a state of depression.

The business cycle is identified as having four distinct phases: expansion, peak, contraction, and trough.
The expansion was marked by increased employment, economic growth, and price pressures. The peak
is the highest point of the business cycle, when the economy produces at the maximum allowable
output, employment is at or above full employment, and inflationary pressures on prices are apparent.
Following its peak, the economy usually enters a correction marked by a contraction in which growth
slows, employment declines (unemployment rises), and price pressure eases. The slowdown stops at the
trough and at this point the economy has reached its lowest point where the next phase of expansion
and contraction will emerge.

How business cycles affect business operations is perhaps best explained by looking at how one
business responds to this cycle. Normal Maintenance is a small business that provides various
construction services for homeowners. They specialize in roofing, deck installation, walls and general
home maintenance. They employ three full-time workers, who usually work forty hours per week for an
average of twelve dollars per hour. This company

has been in business in the same city for more than twenty years and has a strong reputation for quality
of work and reliability.

The celebration

topic: Understanding the Business Cycle is very helpful for business people to run their business
successfully.

Do you agree or disagree with the statement?

Answer:

agree, because by understanding the business cycle, business people will be able to know the up and
down movements of the level of GDP and refer to periods of expansion and contraction at the level of
economic activity around community growth trends. That way business people can build a strong
reputation and good quality work and reliability among people. Although sometimes every stage has
pressure, business people must continue to learn and understand that the economy will eventually start
to develop again and again through another cycle.

The business cycle, too, has four different phases: expansion, peak, contraction, and trough. The
expansion was marked by increased employment, economic growth, and price pressures. The peak is
the highest point of the business cycle, when the economy produces at the maximum allowable output,
employment is above or full employment, and inflationary pressures on prices are apparent. Following
its peak, the economy usually enters a correction marked by a contraction in which growth slows,
employment declines (unemployment rises), and price pressure eases. The slowdown stops at the
trough and at this point the economy has reached its lowest point where the next phase of expansion
and contraction will emerge.

Business cycles can influence business operations, by looking at how one business responds to this
cycle. In each stage of the business cycle, business people are required to be able to respond properly to
each cycle in the stages. That way a businessman will not easily fall by other business people, and a
company that is run will get a good image among the people because they have a better understanding
of the cycles in business, and can handle it well. That way a businessman will succeed in running his
businesses.

*if there are mistakes or there are things that I need to correct please teacher guidance, thank you.