lMAC1 Cl 8uSlnLSS C?

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resenLed by
radlp kumar Sahoo
1he lmpacL of 8uslness Cycles on Lhe
Lconomy
W A buslness cycle ls Lhe rlse and fall of buslness
acLlvlLles wlLhln an lndusLry LhaL lnclude
perlods of proflLablllLy and perlods of loss
W 8uslness cycles do noL occur aL regular
lnLervals 1hese cycles occur lrregularly buL
repeLlLlvely
buslness cycles lnclude
W expanslon
W peak
W conLracLlon
W 8ecovery
1he above facLors affecLs Lhe naLlonal
economy as a whole and noL [usL Lhe lndusLry
experlenclng Lhe flucLuaLlon
Lxpanslon
W uurlng Lhe expanslon phase buslnesses are
growlng and creaLlng more [obs
W 1hls causes an lncrease ln employmenL and
decrease ln Lhe unemploymenL raLe
W lf Lhe economy ls growlng aL a relaLlvely fasL
pace lL puLs upward pressure on Lhe general
prlces of goods and servlces resulLlng ln
lnflaLlon
eak
W A peak occurs when Lhe expanslonary phase
of Lhe buslness cycle ls abouL Lo end
W uurlng an economlc peak Lhe economy ls no
longer growlng reLall sales are decllnlng and
economlc ouLpuL ls decreaslng
W A rlse ln Lhe unemploymenL raLe can slgnlfy
Lhe peak of an expanslon cycle
ConLracLlon
W 1he conLracLlon phase of Lhe buslness cycle ls
when Lhe economy beglns Lo shrlnk
W LconomlsLs also refer Lo Lhls perlod as a
recesslon ln Lhe buslness cycle
W uurlng Lhls perlod economlc ouLpuL
decreases 1hls resulLs ln [ob losses and an
lncrease ln Lhe unemploymenL raLe
8ecovery
W When economlc ouLpuLs lncrease and
buslnesses begln Lo expand lL lndlcaLes LhaL
Lhe buslness cycle ls ln Lhe recovery phase
W uurlng Lhls phase Lhe employmenL raLe ls
rlslng whlle Lhe unemploymenL raLe ls falllng
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