Business Cycle

1. Rate the government (central bank) sets and maintains as the official exchange rate
6. Responsible for price stability in the UK
7. The second stage is a peak when the economy hits a snag, having reached the maximum level of growth. Prices hit their highest level, and economic indicators stop growing. Many people start to restructure as the economy's growth starts to reverse.
9. A coincident and pro-cyclical variable.
11. They place a greater role for expansionary fiscal policy (government intervention) to overcome recession
13. Data that has been broken down by detailed sub-categories, for example by marginalised group, gender, region or level of education

2. This is the first stage of the business cycle
3. Rate is determined by the private market through supply and demand.
4. Strongly counter-cyclical and coincident
5. A measure of how much economic output is generated for a unit of input,
8. This period marks the end of the depression, leading an economy into the next step: recovery.
10. In this stage, the economy starts to turn around. Low prices spur an increase in demand, employment and production start to rise, and lenders start to open up their credit coffersFixed Rates
12. Periods of contraction when unemployment rises and production slows down