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    Business cycles are fluctuations in the economy characterized by periods of prosperity with rising prices and low unemployment alternating with periods of depression with falling prices and high unemployment. The fluctuations follow a wave-like and recurrent pattern, with the movement from peak to trough and back again being asymmetrical and prosperity ending faster than the gradual decline into depression. Business cycles are self-generating, with each phase terminating and transitioning into the next in a continuous loop.

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    Business cycles are fluctuations in the economy characterized by periods of prosperity with rising prices and low unemployment alternating with periods of depression with falling prices and high unemployment. The fluctuations follow a wave-like and recurrent pattern, with the movement from peak to trough and back again being asymmetrical and prosperity ending faster than the gradual decline into depression. Business cycles are self-generating, with each phase terminating and transitioning into the next in a continuous loop.

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    20 views1 page

    Business Cycle

    Uploaded by

    reshma_sukumarankp
    Business cycles are fluctuations in the economy characterized by periods of prosperity with rising prices and low unemployment alternating with periods of depression with falling prices and high unemployment. The fluctuations follow a wave-like and recurrent pattern, with the movement from peak to trough and back again being asymmetrical and prosperity ending faster than the gradual decline into depression. Business cycles are self-generating, with each phase terminating and transitioning into the next in a continuous loop.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    BUSINESS CYCLE

    Definition:
    According to John Maynard Keynes, Business cycle or Trade cycle is composed of periods of good trade characterized by rising price and low unemployment altering with periods of bad trade characterized by falling price and high unemployment percentage. In simple words Business Cycle is a fluctuation of the economy characterized by periods of prosperity followed by periods of depression.

    Characteristics of Business Cycle: The fluctuations are wave like movement and are recurrent in nature. The movement from peak to trough and again trough to peak is not
    symmetrical. According to Keynes, prosperity phase of business cycle comes to end fast but dip is gradual and slow.

    Business cycle is self generating. Every phase has the termination period
    that is end of depression and start of prosperity and vice versa. Hence, there cannot be either indefinite depression or prosperity.

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