BUSINESS CYCLE Meaning and
Definition
-
The business cycle refers to the recurring pattern of economic expansion and contraction that occurs in a market economy. It is a term used to describe the fluctuation in overall economic activity, including the levels of production, employment, income, and prices of goods and services, over a period of time.
The business cycle is typically composed of four distinct phases: expansion, peak, contraction, and trough. During the expansion phase, economic activity increases, with rising levels of output, employment, and income. This is considered a period of economic growth and prosperity.
The peak phase represents the highest point of the business cycle, where economic activity reaches its maximum level, before beginning to decline. This is often characterized by a heightened level of inflation, as demand outpaces supply.
The contraction phase is a period of economic decline, marked by decreased levels of production, employment, and income. This phase is often referred to as a recession or economic downturn and can be accompanied by rising unemployment rates and falling asset values.
The trough phase represents the lowest point of the business cycle. It is the end of the contraction phase and marks the transition to the next expansion phase. Economic activity begins to recover, and output and employment gradually start to increase again.
Understanding the business cycle is crucial for policymakers, investors, and businesses to make informed decisions and predict future economic trends.
Common Misspellings for BUSINESS CYCLE
- vusiness cycle
- nusiness cycle
- husiness cycle
- gusiness cycle
- bysiness cycle
- bhsiness cycle
- bjsiness cycle
- bisiness cycle
- b8siness cycle
- b7siness cycle
- buainess cycle
- buziness cycle
- buxiness cycle
- budiness cycle
- bueiness cycle
- buwiness cycle
- busuness cycle
- busjness cycle
- buskness cycle
Etymology of BUSINESS CYCLE
The word "business cycle" is a compound noun made up of the words "business" and "cycle".
The term "business" originated from the Old English word "bisignes", which meant "anxiety" or "care". It later evolved to refer to one's occupation or trade.
The word "cycle" has its roots in the ancient Greek word "kyklos", meaning "circle" or "wheel". In English, "cycle" refers to a recurring sequence or series of events.
Therefore, "business cycle" refers to the recurring pattern of growth and contraction in economic activity. This term was coined in the late 19th century to describe the fluctuations in economic conditions, such as employment, production, and prices, that occur over time.
Similar spelling words for BUSINESS CYCLE
- business college,
- business agent,
- business life,
- business deal,
- business firm,
- business school,
- Busines Lunch,
- business address,
- business sector,
- business expense,
- business concern,
- business office,
- business people,
- business relation,
- business loan,
- businesslike,
- business activity,
- businessmen,
- business letter,
- businesspeople,
- business district,
- business traveler,
- business line,
- business news,
- business index,
- business leader,
- business editor,
- businesswoman,
- businessperson,
- businessman,
- business lunch,
- business suit,
- business card.
Infographic
Add the infographic to your website:
