FAQ’s on Business Cycle
Q1. What is the Business Cycle?
Ans. The business cycle is the periodic ups and downs in economic activity that an economy experiences over time. It is characterized by four phases: expansion, peak, contraction, and trough.
Q2. How is the Business Cycle measured?
Ans. There are a few different ways to measure the business cycle, including using economic indicators such as gross domestic product (GDP), unemployment rate, industrial production, retail sales, and stock market performance.
Q3. What are the Four Phases of the Business Cycle?
Ans. The four phases of the business cycle are expansion, peak, contraction, and trough.
Q4. How long do Business Cycles last?
Ans. The length of a business cycle can vary significantly. Some business cycles last for just a few years, while others can last for a decade or more. On average, business cycles tend to last about 5-7 years.
Business Cycle: What It Means, How to Measure, Its 4 Phases
The term “business cycle” is used in economics to describe the periodic fluctuations in economic activity that an economy experiences over time. These fluctuations can be measured by indicators such as GDP, unemployment, and inflation. The business cycle is also sometimes referred to as the “economic cycle” or the “trade cycle.” The business cycle is a key concept in macroeconomics, which is the study of the economy as a whole.