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.


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

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