ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When moving from a peak to a trough the economy is in a recession, but when moving from a trough to a peak it is in an expansion or boom. The term used to describe all of these ups and downs over time is the business cycleThe term used to describe the cyclical pattern of economic expansions and contractions over time..

Detailed explanation-2: -The alternating phases of the business cycle are expansions and contractions (also called recessions). Recessions often start at the peak of the business cycle-when an expansion ends-and end at the trough of the business cycle, when the next expansion begins.

Detailed explanation-3: -Economists use the term business cycle to describe the ups and downs, or fluctuations, in an economy. More specifically, the term refers to the fluctuating levels of economic activity over a period of time measured from the beginning of one recession to the beginning of the next.

Detailed explanation-4: -Why are ups and downs in the business cycle normal? A. Many events that affect the business cycle are expected and do not occur naturally, such as shortages or surpluses, changes in investment spending, and speculation. B.