is the state of the economy over a long period of time. Direct effect Indirect effect Short-run economics

When we think about the economy over a long period, we can’t help but dive into the fascinating realm of trends and cycles! Economies typically go through phases: expansion, peak, contraction, and trough. These cycles can influence aspects like employment rates, consumer spending, and production levels, leading to a rollercoaster of growth and recession that can shape nations for generations to come. As for the direct and indirect effects, imagine a pebble thrown into a pond – it creates ripples! The direct effects of economic changes are immediate, like job creation from a new factory opening. Indirect effects, however, flow outwards, affecting local businesses, services, and even property values as the new jobs create demand for more and varied services, leading to a butterfly effect that can revitalize entire communities over time!