Royal College of Commerce and

Science
Trade
Domvibli (E)

Cycles
Under the guidance of – Prof Aswini Chawan

SY BMS
FS21024 – Beby Mojad
FS21021 – Sameer Mohanty
INTRODUCTI
ON

Trade cycles or business cycles refers to the

ups and downs in business. Business is
always characterised by fluctuations
rather than Stability. Trade cycles indicate
the progress. attained by a country during
a given period of time.

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MEANIN
G

The fluctuations manifest themselves in terms of

changes in income, employment Savings, prices and
investment These fluctuations. in the various
economic indicators are Called business cycles
or trade Cycles.

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DEFINITI
ON

According to J.M. Keynes "A trade

Cycle is Compared Composed a of
periods of good trade, characterised by
rising prices, low unemployment altering
with periods of bad trade characterised
by falling prices and
high unemployment."

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Features/Characteristics of Trade Cycle
Business Cycles exhibit Certain Specific features. They
are as follows:

 Business Cycles are recurrent in nature but not periodical.

 It refers to wave like fluctuations. in economic activities.
 The various economic variables like output, employment income
prices etc. move in the same direction. Either they a rise
or fall together.
 Prosperity and depression have the Seeds of their own follow
each other alternately.
 Both prosperity and depression have the Seeds of their
own destruction
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Phases of Trade Cycle

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 CONCLUTION
In a business cycle, the 'Expansion' is
measured from the trough (or bottom) of the
earlier business cycle to the peak of
the current cycle.

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 Reference

Book : Business Economic -2.

From : GOOGLE SEARCH ENGINE

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