BUSINESS CYCLE

PRESENTED BY CHANDAN JAGTAP AJIT MANGARULAKR SACHIN METHREE

BUSINESS CYCLE
MEANING

The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time. The five stages of the business cycle are growth (expansion), peak, recession (contraction), trough and recovery. At one time, business cycles were thought to be extremely regular, with predictable durations, but today they are widely believed to be irregular, varying in frequency, magnitude and duration.

FOUR STAGES OF BUSINESS CYCLE

Stage One Start-up/Creation Two Growth Three Maturity Four Recession/Decline

Stage

Stage

Stage

LEADING ECONOMIC INDICATORS

The unemployment rate Labor Cost Index

The The

utilization of productive capacity

prices

Commodity

Changes in business inventories Worker productivity gains

CAUSES OF BUSIESS CYCLE

POPULATION

DEMAND

INTEREST RATES

BUSINESS CYCLE
CONCLUSION

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