What is a Business Cycle?
A business cycle is a periodic fluctuation in economic activity that an economy experiences over time. These fluctuations can be measured by indicators such as gross domestic product (GDP), unemployment, and inflation. Business cycles are a common feature of capitalist economies, and they have been studied by economists for centuries. The causes of business cycles are complex and multifaceted and can include both internal and external factors. Internal factors may include monetary and fiscal policy, technological innovations, and changes in consumer and business confidence. External factors may include global economic conditions, political events, and natural disasters.
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.