Business Cycle

By: Alyssa

What is a Business Cycle?

A business cycle refers to a various trend, which occurs in businesses and or industries. This lets companies know what to expect during a business cycle. During a business cycle, a company goes through several stages: Expansion, Contraction, Trough, and Peak. Expansion is when the economy begins to grow, again. Contraction is when the economy slows down. Peak is when the economy is 'over-heated'. Trough is when an economy hits rock bottom. A business cycle can be tracked in two different ways, GPD and unemployment. A company will go through recessions. Recessions occur about every 10 months. During recessions, inflation tends too fall.

Sources:

Amadeo, Kimberly. "What Is the Business Cycle Stages and Definition."About.com. N.p., n.d. Web. 01 June 2015


"Macroeconomics: The Business Cycle | Investopedia." Investopedia. N.p., 30 Mar. 2011. Web. 01 June 2015.