2. Business cycle definitions
Business cycle referred to as the period of expansion and contraction of economic
activities.
Business cycle defined as the period of growth and decline of economic
activities.
Business cycle defined as the increase and decrease of economic activities.
Referred to the recurrent upswings and downswings of economic activities.
4. PHASES OF BUSINESS CYCLE
Prosperity phase
Contraction phase
Depression phase
Expansion phase
5. Prosperity phase
Also termed as the peak period
Means the end of expansion and the beginning of contraction
It is where the economy stops booming
Businesses can’t increase production and labour
High level of output
Low unemployment
High level of production
6. Contraction phase
Also referred to as recession phase
Period of decline in economic activities
Unemployment rate increases
Period of retrenchment
Decline in output
Deflation occurs
7. Depression phase
Also known as trough phase
It is the lowest level of business cycle
High unemployment rate
Low spending
Stock prices decline
8. Expansion phase
Also known as the recovery phase
Low unemployment rate
Salaries and wages rises
High demands for goods and more spending
Investments increases
Production increases
9. Key question on business cycle
In which way does each phase of the business cycle impact the economy?
10. Reference list
Marschall, B. Business cycle power point. 2015.
https://www.slideshare.net>breetmarschall
Mhlongo, T. Business cycle presentation. 2014.
https://www.slideshare.net>makhodama
‘Shanu’, U. Business cycle. 2013. https://www.slideshare.net>ujjmishra1
Singh, A. Business cycle. 2013. https://www.slideshare.net>anarugnvs
Singh, C. Business cycle. 2017. https://www.slideshare.net>cshekhar8
