Business Cycle With Labels

Learn more about what a business cycle is how a business cycle works and the four phases that each business cycle has.

Business cycle with labels. The term business cycle refers to different phases in the growth of output and income of an economy. A boom is characterized by a period of rapid economic growth whereas a period of relatively stagnated economic growth is a recession. A slowdown in the pace of economic activity defined by low or stagnant growth high unemployment and declining prices.

These are measured in. The line of cycle that moves above the steady growth line represents the expansion phase of a business cycle. Business cycles are identified as having four distinct phases.

The upper turning point of a business cycle and the point at which expansion turns into contraction. 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 and. Business cycles are a type of fluctuation found in the aggregate economic activity of nations a cycle consists of expansions occurring at about the same time in many economic activities.

To address this issue they examine a unique data set that combines a broad set of seven marketing mix instruments with private label share using two decades worth of data. The different phases of a business cycle as shown in figure 2 are explained below. The authors investigate whether and to what extent marketing conduct varies over the business cycle and how this contributes to the growing popularity of private labels.

The cycle is a useful tool for analyzing the economy. Expansion peak contraction and trough. It can also help you make better financial decisions.

An expansion is characterized by increasing employment economic growth and upward pressure on prices. The business cycle is the natural rise and fall of economic growth that occurs over time. The time period to complete this sequence is called the length of the business cycle.