Features Underpinning Forecasting with Regard to Business Cycles (Grade 12 NSC Matric Economics): Flashcards

Early warning signals predicting future economic activity

3-6 months before actual change occurs

Move simultaneously with economy, show current state

Change after business cycle moves to new phase

Confirm cyclical changes have occurred, not predict

Combine various indicators of same type into single value

Vertical difference between trough and following peak

Duration from peak to peak or trough to trough

Using known data to estimate unknown future conditions

Smooth fluctuations to reveal underlying trends