Sunday, January 9, 2011

The business cycle

http://www.quickmba.com/econ/macro/business-cycle/


The business cycle is the irregular changes that
business go thriugh ecinomically.
it is made of a)peak, b)expansion, c)trough, d) contraction.
Peak is the highest part of the business cycle ,Expansion is the part of the bussiness cycle in which economic activity is growing, Trough is the lowestb part of the business cycle,Contraction is lowest part of the business cycle,,, some economists count depression which is a major slowdown in economic activity.
Some causes of business fluctuations are
1) Business Investment: made of the innovations of business
2)Government activity : policies of spending and how to use taxes as well as its control over money.


Some indicators of business are GDP which helps to find out the condition of countries as well as if there are any inflation or recession , Employment which is how much people are employed ; the more the people are employed the more the economy increases and vice versa ,, and last: personal income ; the more peoplle have money the more they spend and vice versa.

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