BUSINESS CYCLE

The business cycle, also known as the economic cycle or trade cycle, is the downward
and upward movement of gross domestic product around its long-term growth trend. The length
of a business cycle is the period of time containing a single boom and contraction in sequence.
These fluctuations typically involve shifts over time between periods of relatively rapid
economic growth and periods of relative stagnation or decline .
Business cycles are usually measured by considering the growth rate of real gross
domestic product. Despite the often-applied term cycles, these fluctuations in economic activity
do not exhibit uniform or predictable periodicity. The common or popular usage boom-and-bust
cycle refers to fluctuations in which the expansion is rapid and the contraction severe.
The current view of mainstream economics is that business cycles are essentially the
summation of purely random shocks to the economy and thus are not, in fact, cycles, despite
appearing to be so. However, certain heterodox schools propose alternative theories suggesting
that cycles do in fact exist due to endogenous causes.tages in the business cycle

The business cycle generally consists of four phases or stages, namely prosperity (cycle peak),
slump (economic recession), economic troughs, and recovery (expansion).

I really agree because the understanding of this cycle can be a lesson and an example for dealing
with the rigors of the business world