Assalamuallaikum warrahmatullahi wabarrakatuh

Hi I’m Dini Kurniati and this is my opinion about how the business cycle can tell us about economic
performance : 

Business cycles are identified as having four distinct phases: expansion, peak, contraction, and
trough.

1. Expansion

In this phase we can know economic performance in growth because High demand from consumers
encourages companies to increase production, The company is operating at or near full capacity with
increased productivity. To increase output, they buy new capital goods such as machinery and
factories. At the same time, the high demand allows them to raise the selling price to earn more
profit.

In this phase we as a company or investor can improve our production to increase profit, employ
multiple employees.

2. Peak

in this phase the economic performance is at its peak. The growth of economic activity shows a
slowing rate. Consumer spending is still big but growing more slowly than before. Companies are
starting to slow down the pace of hiring.

3. Contraction

This phase occurs after the peak but before the trough and marks the end of the growth period.
Indicators of economic activity showed a sharp decline. Consumer spending declined and durable
goods suffered the worst.

4. Through

This is the period when economic activity is at its lowest. The unemployment rate remains high. To
meet the demand, companies replace their permanent workers with temporary workers. New hiring
hasn't happened yet but layoffs are slow.

CONCLUSION

The business cycle can tell us about economic performance because in business cycle are inditified
as having four phases.

In expansion phase the economic performance in growth stage and develop, the high demands and
employ more employee and selling more product to gain profit

In peak phase the economic performance in peak of the business cycle the economi goin to strong
and still make high demand but the company slow down of hiring people

In contraction phase the economic performance is end of the growth period and company start to
stop hiring people but consumer still spending but more less
In through phase the economic performance in the lowest stage because The unemployment rate
remains high. To meet the demand, companies replace their permanent workers with temporary
workers. New hiring hasn't happened yet but layoffs are slow.