Answer:
A business cycle can be defined as a measure of the short-run fluctuations (downswings and upswings) in economic activity such as the rate of employment, level of output (production), sales and revenue over a specific period of time.
Explanation:
A business cycle can be defined as a measure of the short-run fluctuations (downswings and upswings) in economic activity such as the rate of employment, level of output (production), sales and revenue over a specific period of time.
Simply stated, a business cycle is a measure of the periodic but irregular changes (rise and fall) in the gross domestic product (GDP) of a country.
Basically, the business cycle is characterized by four (4) main stages or phases and these are;
I. Recession (contraction).
II. Recovery
III. Growth (Growth)
IV. Decline
The main purpose of a business cycle is to analyze an economy and to make better financial decisions with respect to a country.
