Economics Business Cycles Questions
A business cycle refers to the recurring pattern of expansion and contraction in economic activity over time. It is characterized by alternating periods of economic growth (expansion) and decline (contraction), which can be observed in various macroeconomic indicators such as GDP, employment, and investment. The business cycle typically consists of four phases: expansion, peak, contraction, and trough. These fluctuations are influenced by various factors such as changes in consumer spending, investment levels, government policies, and external shocks.