Time is measured along the x-axis. what is measured along the y-axis? the business cycle

In the y-axis is measured the level of real output or Gross Domestic Product (GDP).

The business cycle, also known as the economic cycle or trade cycle consists of expansions that take place at the same time in many economic activities, followed by recessions, contractions and equally general recoveries that converge in the expansion phase of the following cycle; the sequence of changes is recurrent but not periodic.

The phases of business cycles can be divided into:

1. Prosperity: It is the maximum point of the economic cycle. An increase in the price level is presented unevenly due to the different changes in costs. These prices also depend on an increase in the volume of money in circulation.

2. Recession: It is one that covers a relatively short time, is characterized by marking a point of flexion where the forces of production are contracted, there are also tensions in the banking system and in the settlement of loans starting a price decline.

3. Shrinkage: It is the minimum point of a business cycle, where there is a drop in productivity in an unequal manner which causes a deformation in the cost-price ratio.

4. Recovery: A harmonization feature of economic activity will begin satisfactorily; it will tend to full employment (that all factors of production are occupied), with an increase in production, wages, prices and interest rates.

levels of production can be increased by technology while holding labor and capital constant, because increased technology makes the production process more efficient. subsequently, the lras curve is almost a vertical line, that can shift to the right, with an increase in technology.

the relationship between the lras curve and the ppc is that both can make the economy could grow. the ppc achieves that when it shifts outward because of more resources or technological advances while the lras curve shifts if more resources are developed or if there are technological advances.

the lras curve is a vertical line at an output level that represents the number of goods and services a nation can produce over a sustained period using all of its productive resources as efficiently as possible with all of the current technology available to it.

the production possibilities frontier (ppf) is a graphical device that is used for economic analysis of production decisions because the ppf measures the maximum possible combinations of two goods that an economy is capable of producing with its currently available resources and technology.

well, there are a lot of places we get information about earth from. like science classes, websites, books, newspapers, etc.