Stages of a Business Cycle

STAGES OF A business enterprise CYCLE RECESSION A cornerâ€"also sometimes referred to as a troughâ€"is a flowing of reduced economic activity in which levels of buying, selling, production, and practice typically diminish. This is the most unwelcome stage of the business beat for business owners and consumers alike. A particularly severe recession is cognize as a depression. RECOVERY Also known as an upturn, the recovery stage of the business rhythm method is the point at which the economy troughs out and starts working its way up to damp financial footing. GROWTH Economic yield is in eye a period of sustained expansion. Hallmarks of this part of the business cycle include increased consumer confidence, which translates into higher levels of business activity. Because the economy tends to hold up at or near full capacity during periods of prosperity, growth periods are also generally accompanied by inflationary pressures. DECLINE Also referred to as a contraction or downturn, a decline basically marks the end of the period of growth in the business cycle. Declines are characterized by reduced levels of consumer purchases (especially of durable goods) and, subsequently, reduced production by businesses.

FACTORS THAT SHAPE BUSINESS CYCLES For centuries, economists in both the United States and Europe regarded economic downturns as diseases that had to be treated; it followed, then, that economies characterized by growth and affluence were regarded as healthy economies. By the end of the 19th century, however, many economists had begun to fill out that economies were cyclical by their very nature, and studies increasingly turned to ascertain which factors were primarily responsible for shaping the direction and disposition of national, regional, and industry-specific economies. Today, economists, merged executives, and business owners cite several factors as particularly central in shaping the complexion of business environments. VOLATILITY OF... If you trust to get a full essay, order it on our website: Orderessay

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