Reading: The Business Cycle

Business Management for Every Enterprise

Unit 4

The Business Cycle

The Business Cycle

In developed countries we can generally see a pattern where there are periods of economic growth, followed by periods of slowing growth and even falling growth.

This is known as the business cycle

The business cycle is the periodic fluctuations in economic activity measured by changes in real GDP

The phases of the business cycle are known as peak, contraction, trough, and expansion.

While the fluctuations are, in practice, highly irregular, the most common illustration of the business cycle shows a standard periodic cycle.

The Business Cycle

The Business Cycle