Question 19M.1.SL.TZ2.a
| Date | May 2019 | Marks available | [Maximum mark: 10] | Reference code | 19M.1.SL.TZ2.a |
| Level | SL | Paper | 1 | Time zone | TZ2 |
| Command term | Explain | Question number | a | Adapted from | N/A |
Explain the various phases of the business cycle.
[10]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definition of business cycle
- diagram to show the different phases of the business cycle and possible trend line
- explanation of the business cycle in terms of the different short-run phases ie boom, recession, depression/slump and recovery, and long-term trend
- examples of specific countries being in different phases of the business cycle.
NB Examiners should be aware of variations in the business cycle diagrams candidates might draw and should be flexible in crediting the diagrams drawn by candidates.
This question was generally well answered by students who explained how the economy changes during different phases of the business cycle. It was interesting to see the variety of approaches to the business cycle used by students but the overall theme of how real GDP/economic growth changes over time was clearly understood in many answers. In the highest achieving responses students were able to explain how real GDP changes overtime and how this affected inflation and unemployment. The highest achieving responses supported this with real-world examples of how the business cycle has affected particular countries.
