Assume that the following data characterize the hypothetical economy of trance: money supply = $200 billion; the quantity of money demanded transactions = $150 billion; the quantity of money demanded as an asset = $10 billion at 12 percent interest, increasing by $10 billion for each 2-percentage-point fall in the interest rate.
a. what is the equilibrium interest rate in trance?
b. at the equilibrium interest rate, what is the quantity of money supplied, the money demanded, the amount of money demanded transaction, and the amount of money demanded as an asset in the trace?

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.