Business Cycle Has Four Phases

The line of cycle that moves above the steady growth line represents the expansion phase of a business cycle.

Business cycle has four phases. Expansion represents a period of growth. The four phases of a business cycle are briefly explained as follows 1. What is the business cycle.

The business cycle moves about the line. Business cycles are identified as having four distinct phases. The business cycle can also be defined the downward and upward fluctuations of gross domestic product gdp along its natural growth rate over a long period of time.

This period is termed as prosperity phase. The phases of the business cycle. The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages.

Below is a more detailed description of each stage in the business cycle. Stages of the business cycle. Business cycle phase 1.

This is the most critical and fearful stage of a trade cycle. While no two business cycles are exactly the same they can be identified as a sequence of four phases that were classified and studied in their most modern sense by american economists arthur burns and wesley mitchell in their text measuring business cycles the four primary phases of the business cycle. Project success is achieved by the standard four phase process of project life cycle.

The cycle is shown on a graph with the horizontal axis as time and the vertical axis as dollars or various financial metrics. Each project has a beginning then several phases of development and a successful or unsuccessful ending. An expansion is characterized by increasing employment economic growth and upward pressure on prices.