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Involvement with finance

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Compose a 250 words essay on For Week 5. The consumers are aware of their involvement with finance as operations between the parties are transparent. Banks provide ideal information for credit, mortgages and advice on risky investments making consumers have good decision-making in the economy.Business cycles are the fluctuations that an economy experiences over a particular period. In United States, it is usually measured by the national bureau of economic research (NBER) often noted by expansion and recession. The cycle begins with development that shows an economic growth of high income, reduction of unemployment and increased productivity while depression refers to contraction of the exceeding highlighted indicators. For expansion, it is the time from one trough of the previous cycle to peak of the current cycle, and the vice-versa is true for recession.Economists believe that workers should be compensated according to the output of the firm or the economy. Hence, as labor productivity increases, wages should rise in equal measure that has not been the case in the United States (Basu, & Foley, 2013). Inflation has been on the rise while wages are relatively constant over the past few decades. hence their consumption power is reduced as they cannot purchase the bundles of goods as before. Due to this, workers have to worry about their production in the

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