Business Cycle Stages In Economics

Stages of the economy.

Business cycle stages in economics. A peak is the highest point of the business cycle when the economy is producing at maximum allowable. The business cycle moves about the line. Who measures the business cycle.

The first stage in the business cycle is expansion. The national bureau of economic research determines business cycle stages using quarterly gdp growth rates. An expansion is characterized by increasing employment economic growth and upward pressure on prices.

Economic cycles are identified as having four distinct economic stages. Below is a more detailed description of each stage in the business cycle. An expansion is characterized by increasing employment economic growth and upward pressure on prices.

In the expansion phase there is an increase in various economic factors such as production employment output wages profits demand and supply of products and sales. It also uses monthly economic indicators such as employment real personal income industrial production and retail sales. In this stage there is an increase in positive economic indicators such as employment income output wages profits demand and supply of goods and services.

Expansion peak contraction and trough. Economic cycles are identified as having four distinct economic stages. A peak is the highest point of the business cycle when the economy is producing at maximum allowable output employment is at or above full employment.