BUSINESS CYCLE

Sambhaji Burge Yogesh Gunjal Mangesh Mandpe Naved Prashant Padghan

BUSINESS CYCLE
Definition of Business Cycle
The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time.

The stages of the business cycle : Growth (expansion) Peak Recession (contraction) Trough Recovery

Growth (expansion)
economy moves from a trough to a peak. business activity surges and gross domestic product expands

Peak
It is highest point the last month before several key economic indicators, such as employment and new housing starts, begin to fall. real GDP spending in an economy is its highest level.

Recession (contraction)
A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's GDP Trough The end of a period of declining business activity and the transition to expansion.

Recovery
A U-shaped recovery involves a gradual decline followed by a gradual rise back to its previous peak.

Compared to a V-shaped recovery, the U-shaped recovery takes longer time.