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M E A N I N G  A N D  P H A S E S  O F  B U S I N E S S  C Y C L E S
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M E A N I N G A N D P H A S E S O F B U S I N E S S C Y C L E S

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Business life cycle

Business life cycle

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  • 1. MEANING AND PHASES OF BUSINESS CYCLES
  • 2. * Syed Sibtain* TayyebaDilgeer
    * Vartika Gupta * Shelley Sharma
    * NazishMufti * Mushfiq Hussain
  • 3. Relating Business Cycle To Romance Cycle
    “You look good. You look verrrry good.”
    Wedding Marchfor women
    Death March for men
    You decide to
    get married
    Gets engaged
    But with education
    a job is gained as
    well as a new house
    1st
    date
    You become a
    happy family
    Must have good “meeting
    line” to get the first date.
    Jealousy sets in
    One loses a job
    Baby-5 months later
    But – he does nothing but make
    loud noises atone end, and has
    no discipline at the other end.
    She goes off
    to college.
    He uses the meeting line on
    unsuspecting freshmen girls
  • 4.
  • 5. Is like a roller coaster it has it’s ups and downs.
    These ups and downs are called Business Cycle.
    The Business cycle brings the good and the bad times.
  • 6. THE BUSINESS CYCLE
  • Expansion
    Expansion
    Recession
    Boom
    Peak
    Upturn
    Downturn
    Total Output
    Secular growth trend
    Trough
    0
    Jan.-
    Mar
    Apr.-
    June
    July-
    Sept.
    Oct.-
    Dec.
    Jan.-
    Mar
    Apr.-
    June
    July-
    Sept.
    Oct.-
    Dec.
    Jan.-
    Mar
    Apr.-
    June
    PHASES OF BUSINESS CYCLE
  • 11. EXPANSION
    • A speedup in the pace of economic activity.
    Demand, output, employment and income are at a high level. 
    They tend to raise prices. 
    The increase of profit and the prospect of its continuance commonly cause a rapid rise in stock market values.
  • 12. PEAK
    The peak may lead the economy to over full employment and to inflationary rise in prices. 
    Symptom of the end of the prosperity phase and the beginning of the recession. 
    The seeds of recession are contained in the boom in the form of strains in the economic structure which act as brakes to the expansionary path. 
  • 13. RECESSION
    Recession starts when there is a downward descends from the ‘peak’ which is of a short duration. 
    It marks the turning period during which the forces that make for contraction finally win over the forces of expansion. 
    Its outward signs are liquidation in the stock market, strain in the banking system.
  • 14. TROUGH
    Recession leads to depression when there is a general decline in economic activity.
    There is considerable reduction in the production of goods and services, employment, income, demand and prices. 
    The general decline in economic activity leads to a fall in bank deposits.
  • 15. THEORIES OF BUSINESS CYCLE
    Endogenous theories
    Monetary theory
    Over-investment theory
    Under-consumption theory
    Psychological theory
  • 16. THEORIES OF BUSINESS CYCLE
    Exogenous theories
    Sunspot theory
    War theory
  • 17. ENDOGENOUS THEORIES
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. EXOGENOUS THEORIES
  • 23.
  • 24.
  • 25. SUMMARY
  • 26.
  • 27.
  • 28.
  • 29.
  • 30. (TROUGH)
    (Expansion)
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42. For any Queries & Suggestions
    please contact
    shahsibtain@gmail.com

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