BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -As companies lay off workers, consumers lose their jobs and stop buying anything but necessities. That causes a downward spiral and recession. The bust phase stops when supply lowers prices enough to stimulate demand. It occurs when prices are so low that those investors who still have cash start buying again.

Detailed explanation-2: -A boom ends when GDP turns negative. That’s the contraction phase of the business cycle. It signals the start of a recession.

Detailed explanation-3: -The business cycle is caused by the forces of supply and demand-the movement of the gross domestic product GDP-the availability of capital, and expectations about the future. This cycle is generally separated into four distinct segments: expansion, peak, contraction, and trough.

Detailed explanation-4: -A bust is a period of time during which economic growth decreases rapidly. In the stock market, busts usually are associated with bear markets. During busts, inflation decreases, and in extreme cases, can give way to deflation. In addition, unemployment rises, income falls, and aggregate demand decreases.