2. WHAT IS A BUSINESS CYCLE?
https://www.geektonight.com/business-cycle/
3. The Business cycle can be defined
as follows:
A business cycle refers to periods of expansion and contraction.
Business cycle is the period of growth and decline of economic activities.
Business cycle defined as the increase and decrease of economic activities.
A peak is the high point following a period of economic expansion.
A trough is the low point following a period of economic decline.
The recurring and fluctuating levels of economic activity that an economy experiences over a long
period of time.
4. Diagram showing a business cycle
https://marketbusinessnews.com/financial-glossary/business-
cycle/
6. Prosperity phase
It can also be referred to
as the peak period.
This Phase Is
Characterised By Good
Trade In Which Production
Activities Are In The Full
Swim/Swing.
Rapid increase in supply &
modest increase in prices
Supply in later stages
increases with a lag & this
leads to rise in prices
which gathers momentum
later on.
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
8. 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
10. Depression phase
Also known as trough phase
It is the lowest level of business cycle
High unemployment rate
Low spending
Stock prices decline
11. 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
12. How do we measure business
cycle?
The business cycle is the periodic but irregular up and- down
movements in economic activity, measured by fluctuations in
Real GDP and other macroeconomic variables.
13. The causes of business cycles:
INTERNAL FACTORS
Consumption.
Business investments.
Government activities.
EXTERNAL FACTORS
Inventions and innovations.
Wars and political events.
14. REFERENCE LIST
Aatur, P. What is business cycle, understand the concept of business cycle. February 12, 2018.
https://www.slideshare.net/AaturPorwal/business-cycle-87825433?qid=3a21373e-c91d-44ab-baa9-
e92bdc99d0ce&v=&b=&from_search=6
Sikhulile P, B. Business cycle presentation. September 17, 2018. https://www.slideshare.net/SikhulilePriscillah/business-
cycle-114993089?qid=8d11dcde-ecbb-49da-a34d-871ee3a2830f&v=&b=&from_search=7
Simran, K (September 24, 2017). Business cycle: introduction, features, phases of business cycle.
https://www.slideshare.net/SimranKaur116/business-cycle-80102094?qid=aeb1fa71-f465-4b7e-825f-
1fd710324ee9&v=&b=&from_search=5
Akshay, A (August 17, 2014). Business cycle. https://www.slideshare.net/AkshayAggarwal/business-cycle-
38070797?qid=76a1c516-e5bc-4918-9d41-eb0b37cefbc0&v=&b=&from_search=2
Pritam977 (October 06, 2014). A business cycle. https://www.slideshare.net/pritam977/business-cycle-
39919306?qid=d23d6cf8-394d-47f3-9a9e-6825b74dbb67&v=&b=&from_search=3