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Business cycle


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Business cycle presentation

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Business cycle

  2. 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.
  3. 3. Business cycle
  4. 4. PHASES OF BUSINESS CYCLE  Prosperity phase  Contraction phase  Depression phase  Expansion phase
  5. 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. 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. 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. 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. 9. Key question on business cycle  In which way does each phase of the business cycle impact the economy?
  10. 10. Reference list  Marschall, B. Business cycle power point. 2015.>breetmarschall  Mhlongo, T. Business cycle presentation. 2014.>makhodama  ‘Shanu’, U. Business cycle. 2013.>ujjmishra1  Singh, A. Business cycle. 2013.>anarugnvs  Singh, C. Business cycle. 2017.>cshekhar8
  11. 11. THANK YOU!