business cycle (1)

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Business cycle

• The natural rise and fall of economic growth that
  occurs overtime.

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Four phases of business cycle

• Period of recession
• Period of depression
• Period of recovery
• Prosperity phase

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Period of recession

• Jobs are lost and the is feeling of pessimism
• Employment level decrease
• Economic activity decrease

4
Period of depression

• Business and individual struggle
• Spending of household decrease
• Household struggle to provide basic needs

5
Period of recovery

• Production increase
• More jobs are created
• Increasing in spending by firms
• Economic activity increase

6
Prosperity phase

• People are employed
• Production increase
• Price, wages, interest and profit increase
• Everything in the economy is going well

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