A business cycle is a cycle of fluctuations in the Gross Domestic Product (GDP) around its long-term natural growth rate. It explains the expansion and contraction in economic activity that an economy experiences over time.

There are basically two important phases in a business cycle that are prosperity and depression. The other phases that are expansion, peak, trough and recovery are intermediary phases. Figure-2 shows the graphical representation of different phases of a business cycle:

2024年6月6日 · The business cycle is the time it takes the economy to go through all four phases of the cycle: expansion, peak, contraction, and trough.

A business cycle is the repetitive economic changes that take place in a country over a period. It is identified through the variations in the GDP along with other macroeconomics indexes. The four phases of the business cycle are expansion, peak, contraction, and trough.

2023年2月2日 · The business cycle consists of four phases: expansion, peak, contraction, and trough. Expansion is the phase of economic growth, the peak is the highest point of the business cycle, contraction is the phase of economic decline, and trough is …

2023年8月6日 · A business cycle graph is a graphical representation of the relationship between the real GDP of a country and time. This graph provides the visual representation of the fluctuations in economic activity in a country.

2022年1月12日 · The phases of the business cycle can be explained in a diagram below; A diagram describing the various stages of the business cycle. Example of how supply and demand impact the business cycle

In brief, a business cycle is the periodic but irregular up-and-down movements in economic activity. Since their timing changes rather unpredictably, business cycles are not regular or repeating cycles like the phases of the moon. 2. Characteristics of Business Cycles: Following are the main features of trade cycles:

2022年2月15日 · There are four stages in the economic cycle: expansion (real GDP is increasing), peak (real GDP stops increasing and begins decreasing), contraction or recession (real GDP is decreasing), and trough (real GDP stops decreasing and starts increasing).

The business cycle diagram is the graphical representation of the phases of the business cycle. A recession refers to the period in a business cycle where there is a rapid decline in the national output, income, and employment.