Search
Business cycle
01
the rhythmic pattern of economic growth and decline, consisting of phases such as expansion, peak, contraction, and trough
business cycle
n
Example
The peak of the business cycle is marked by high employment levels, robust economic activity, and often, inflationary pressures.
During an economic expansion phase of the business cycle, consumer spending tends to rise, leading to increased production and job opportunities.
The trough of the business cycle represents the lowest point, with economic activity bottoming out, and typically precedes a new phase of expansion.
Businesses that can adapt to the cyclical nature of the economy by diversifying their products or services may be more resilient across various phases of the business cycle.
Central banks often adjust interest rates to influence the business cycle, lowering rates during contractions to stimulate economic activity and raising them during peaks to prevent overheating.
