DISCUSSION 1

Name : Nofitasari
Nim :043316511

Here’s my discussion response :

1. The business cycle is the natural expansion and contraction of economic growth
that occurs in a country over a certain period of time. The rise in the gross domestic
product of a country determines the start and end of the business cycle, which is also
known as the economic cycle or trade cycle. This cycle takes into account the growth
and decline of economic activity over time.

The business cycle can last almost all the time. business cycle duration is the
amount of time required to complete all 5 stages :
1. Expansion
during this stage there are clear positive economic indicators including income growth,
employment, demand, supply and profit.
2. Peak Stage
When the economy becomes saturated and upward growth can no longer continue the
business cycle enters a peak stage. wages, levels of employment, prices of goods and
services as high as possible. at this point the economic indicators stopped increasing
further. many businesses and individuals recheck their budgets in anticipation of a
decline in economic activity.
3. Contaction
At the end of the peak stage the trend of economic growth begins to reverse as the
economy contracts. The contraction phase has two distinct phases namely recession
and depression. the recession phase begins as soon as the expansion phase ends and
economic activity begins to decline. and the depression stage begins after Gross
domestic product falls below the pre-expansion level or steady growth line.
4. Trough Stage
when the depression stage reaches its lowest point, the business site enters the trough
stage. At this point the country experiences negative economic growth, as supply and
demand fall as low as possible
5. Recovery
Once Gross domestic product reaches its lowest point in the cycle, the recovery phase
begins. during this stage the economy starts to recover and reverses the negative trend.
demand increased and supply soon followed. eventually investment resumed and
employment and production began to increase. recovery phase lasts as long as Gross
domestic product returns to a steady growth line.

2. The advantages that a business can get when he knows the business cycle of
his business are

1. Helping in early detection of turning point condition macro economy, and its
relatively accurate
 2. Business cycle benefits produce appropriate indicators for use in the country's
economic structure
Helping in early detection of turning point macro economy, and its relatively accurate

3. I think starting a business can be started as soon as possible. no need to wait too
long. if we are ready to start a business. have the determination and really believe, then
right away we can start a business.

Reference source : https://accurate.id/bisnis-ukm/siklus-bisnis/

BMP ADB14201 Bahasa Inggris Niaga Modul 1. Hal 1.40