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Chapter Overview
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AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

  • Predict the effect of monetary and fiscal policies on key macroeconomic variables such as gross domestic product, interest rates, and the inflation rate.
  • Use leading, coincident, and lagging economic indicators to describe and predict the economy's path through the business cycle.
  • Predict which industries will be more or less sensitive to business cycle fluctuations.
  • Analyze the effect of industry life cycles and structure on industry earnings prospects over time.





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