ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The purpose of a business cycle is to track economic activity. In practical terms, the business cycle tracks the state of an economy from expansion to contraction and recession. It can affect how you spend, how you invest, and how you access credit.

Detailed explanation-2: -The business cycle goes through four major phases: expansion, peak, contraction, and trough. All economies go through this cycle, though the length and intensity of each phase varies.

Detailed explanation-3: -The business cycle model shows the fluctuations in a nation’s aggregate output and employment over time. The model shows the four phases an economy experiences over the long-run: expansion, peak, recession, and trough.

Detailed explanation-4: -An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough. The average economic cycle in the U.S. has lasted roughly five and a half years since 1950, although these cycles can vary in length.