logo image

Business cycle in economics Essay

In economics, business cycle is defined as the recurring levels of economic activity experienced by an economy in a given country over a long period of time. There are five parts or stages of business cycle, which include expansion, peak, recession, trough and recovery. Economic growth is not a steady phenomenon and exhibits patterns of expansion, peak and contraction. The five phases of economic growth cannot be identified easily as a result of certain challenges. It becomes so challenging to identify the five phases of economic growth due to certain reasons.

First, business cycles reflect the recurring rise and fall of economic activities, which is not easy to identify. Economic activities in this aspect relates to production, wages, prices, profits, employment and any other macroeconomic activity. The cycles are recurring, nonperiodic and one cycle should be more than one year making it difficult to measure a season of expansion or contraction.

Business cycles reflect the inability of market place to accommodate shifting markets for new and substitute products, advanced technologies and changing needs of occupational skills (Knoop Todd A., 2004). Technology and occupational skills are major challenges in determination of economic growth because of their rapid change. Business cycles are irregular, vary

Need essay sample on "Business cycle in economics"? We will write a custom essay sample specifically for you for only $ 13.90/page

in frequency, duration and magnitude as a result of rapid change in major economic factors. This is a major challenge to economists and government when they try to measure the level of economic growth.

Business cycle is measured in form of a country’s Gross Domestic Product(GDP) which notable is faced with certain economic changes such as depression and recent economic melt down. It is a changeling because the occurrence of such economic implications is unpredictable. Economic growth is measured by certain indicators reflected by business cycle and this makes it hard for a country to notice its stage of economic development.

Work Cited

Knoop Todd A., 2004, Recessions and Depressions: Understanding Business                                                                    Cycles, Praeger.

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy