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  • Hkcee Economics - 9.1 Business Cycle - P.1

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    Point A on the business cycle diagram is in the recession phase. Three general economic phenomena that occur in this phase are: falling output, rising unemployment, and declining prices. The Hong Kong economy was experiencing a recession from 1998 Q2 to 1999 Q1 based on negative GDP growth, rising unemployment, and declining consumer prices. During a recession, workers with frozen salaries would see a decline in real income due to inflation. Point A on the second business cycle diagram is also in the recession phase. In addition to negative GDP growth, two other economic phenomena in this phase are rising unemployment and falling profits.

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    Point A on the business cycle diagram is in the recession phase. Three general economic phenomena that occur in this phase are: falling output, rising unemployment, and declining prices. The Hong Kong economy was experiencing a recession from 1998 Q2 to 1999 Q1 based on negative GDP growth, rising unemployment, and declining consumer prices. During a recession, workers with frozen salaries would see a decline in real income due to inflation. Point A on the second business cycle diagram is also in the recession phase. In addition to negative GDP growth, two other economic phenomena in this phase are rising unemployment and falling profits.

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    32 views1 page

    Hkcee Economics - 9.1 Business Cycle - P.1

    Uploaded by

    peter wong
    Point A on the business cycle diagram is in the recession phase. Three general economic phenomena that occur in this phase are: falling output, rising unemployment, and declining prices. The Hong Kong economy was experiencing a recession from 1998 Q2 to 1999 Q1 based on negative GDP growth, rising unemployment, and declining consumer prices. During a recession, workers with frozen salaries would see a decline in real income due to inflation. Point A on the second business cycle diagram is also in the recession phase. In addition to negative GDP growth, two other economic phenomena in this phase are rising unemployment and falling profits.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    HKCEE ECONOMICS | 9.1 Business cycle | P.

    1. 1995/I/7
    Look at the business cycle shown below. Identify the phase which point A is in. Indicate THREE general
    economic phenomena which occur in this phase.

    (4 marks)
    2. 2000/I/6
    Study the following data about Hong Kong.
    Year Quarter Year on year % change Unemployment rate Composite
    in real gross domestic (%) consumer price
    product (GDP) index
    1998 2nd -5.1 4.4 119.2
    3rd -6.8 5.0 118.6
    4th -5.7 5.7 116.1
    1999 1st -3.4 6.2 115.6
    (a) Identify the phase of business cycle the economy was in during the above period of time. Give the
    THREE economic phenomena of this phase as indicated by the above data. (4 marks)
    (b) Some workers’ salaries were frozen during this period of time. Explain how their real income would
    change in this period. (3 marks)

    3. 2008/I/5
    Refer to the business cycle shown below. Identify the phase which point A is in. Apart from the information
    about the real gross domestic product (GDP) growth rate in this phase, give TWO general economic
    phenomena which occur in this phase. (3 marks)

    48

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