Business Cycles

NI
B = Bust

Di
s-
In
Sl
o

fl a
h

t i on
t

w
d y Pa

ity

t io
a

Do
S t e

la

n
wn
sper
Inf
A

Pro

Re

Def
C

ces

la
s io

tion
A*

n
n

ry
tio

ve

D*
fla

co

Schumpeter
Re

Re

D = Depression

Time
NI
B = Bust

Di
s-
In
Sl
o

fl a
h

t i on
t

w
d y Pa

ity

t io
a

Do
S t e

la

n
wn
sper
Inf
A

Pro

Re

Def
C

ces

la
s io

tion
A*

n
n

ry
tio

ve

D*
fla

co
Re

Re

D = Depression

Time
 Pa th
St e ady
NI

Time