The Cycle of Business

By: Conor Murdock

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The Business cycle is usually measured by GDP or Gross Domestic Product. GDP is the total amount of goods and services available for trade a country produces in one year. Each of the phases of the cycle is relative to the last. The peak of the cycle is when the output and amount of employment available is maxed out. Income is the money that those who are employed make for their goods and services. The CPI, or the Consumer Price Index is the averaged price that a consumer is willing to pay for a certain good in a certain country. The levels of Consumer and Business Confidence are event through their spending and saving habits. In a good economy during the peak that spending should be up as the confidence is good. This leads to credit investment in which a lender give money out so that a person can spend now and pay later. The Business Cycle affects all the members of the economy. It affects how they spend and how they save. It affect the incomes people make and the jobs that are available. When the economy is good, the lives of those in the economy are good. When the economy is bad, those within the economy suffer.

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