Question

Identify the phases of the economic cycle.You are given 2 events in the Region's recent history-the terrorist attacks on September 2011,and the cricket world cup 2007.Briefly analyse the effects of each event on the region's economic cycle(Caribbean Region).

Answer 1

The economic cycle consists of the phases of expansion, recession, depression, and recovery. With terrorist attacks, there will be a negative impact on the economy. So with terrorist attacks on September 2011, there was a phase of recession in the economy.

The cricket world cup helps in improving the economy as it attracts people from other countries to visit and it helps in increasing consumption expenditure. So, with the cricket world cup, the economic cycle was in the phase of expansion.