Business Cycle Flashcards
1
Q
What is the business cycle
A
Economic cycle
Period of time over which an economy moves from expansion phase to contraction and repeats
Associated with changes in economic activity as reflected in GDP
2
Q
What are the five stages
A
1) Growth/ expansion
2) Peak
3) Recession / contraction
4) Trough
5) Recovery
3
Q
How to they vary
A
Cycles are considered irregular and vary in;
Frequency
Magnitude
Duration
4
Q
How are cycles characterised
A
Changing patterns affecting employment, industrial productivity and interest rates
