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Business Cycles
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== <span style="color: #FFFFFF;">Applying</span> == '''Modeling 'The Economic Pulse' (Identifying the stage of the cycle):''' <syntaxhighlight lang="python"> def identify_cycle_stage(gdp_trend, unemployment_trend, inflation_trend): """ Classifies the current state of the economy. """ if gdp_trend == "Up" and inflation_trend == "Rising": return "STAGE: PEAK (Overheating risk)" elif gdp_trend == "Up" and unemployment_trend == "Down": return "STAGE: EXPANSION (The Boom)" elif gdp_trend == "Down" and unemployment_trend == "Up": return "STAGE: RECESSION (The Bust)" elif gdp_trend == "Flat" and unemployment_trend == "Very High": return "STAGE: TROUGH (The Bottom)" return "Unknown" # Current data: GDP is falling and people are losing jobs. print(identify_cycle_stage("Down", "Up", "Falling")) </syntaxhighlight> ; Cycle Landmarks : '''The 'Dot-Com' Bust (2000)''' β When everyone realized internet companies with no profit were worth $0, causing a global stock market crash. : '''The 'Roaring Twenties'''' β A massive 10-year expansion that ended in the 1929 stock market crash. : '''The 'V-Shaped' Recovery''' β A recession that is short and sharp (like the initial COVID-19 crash) followed by an immediate boom. : '''The 'L-Shaped' Recovery''' β A recession where the economy "Falls" and then just stays flat for years (like Japan's "Lost Decade"). </div> <div style="background-color: #8B4500; color: #FFFFFF; padding: 20px; border-radius: 8px; margin-bottom: 15px;">
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