ECONOMIC

ANALYSIS FOR
BUSINESS
DECISIONS
Name :- Samruddhi . M.
Mandavkar
Roll No. :- MBA2021061
BUSINESS CYCLE
Meaning
Definition
FEATURES
TYPES
CAUSES
MEANING
 BUSINESS CYCLE OR BUSINESS TRADE IS A
TERM THAT DESCRIBE ECONOMIC ACTIVITY
VARIATIONS OCCURINGN IN AN ALMOST
REGULAR TIME SERIES IN ALL CAPITALIST
SOCIETIES .
DEFINITION
 “A TRADE CYCLE IS COMPOSED OF PERIODS
OF GOOD TRADE CHARACTERISTICS BY
RISING PRICES AND LOW UNEMPLOYMENT
PERCENTAGE ALTERING WITH PERIODS OF
BAD TRAIT CHARACTERISED BY FAILING
PRICES AND HIGH UNEMPLOYMENT
PERCENTAGE .”
FEATURES OF BUSINESS
CYCLE :-
 RECURRING FLUCTUATION :- business cycle are
represented by variations which occur regularly in an
unhindered pattern

 PERIOD OF BUSINESS :- the period of completion of

a particular business cycle is around 3 to 4 years .

 PRESENCE OF THE ALTERRING FORCES OF

EXPANSION AND CONTRACTION :- the
interchangeable forces of prosperity and depression in
an economy that are in-built in the system represent a
business cycle .
 PHENOMENON OF THE CRISIS ACCORDING TO
KEYNES :- business cycle is characteristics by the event of
crisis .

 SYNCHRONIC :- existence of business cycle is

contemporary . They have an enfolding attribute of causing
any changes in an individual industry or sector.
TYPES OF BUSINESS CYCLE :-
 MAJOR AND MINOR CYCLES

 BUILDING CYCLES

 KONDRATIEFF CYCLES
CAUSES OF BUSINESS CYCLE :-
 BANKING OPERATIONS

 CAPITAL GOODS AND CONSUMER GOODS

 PURCHASING POWER

 PROFIT MANIA

 HUMAN PSYCHOLOGY

 CYCLICAL CHANGES IN WEATHER