Business Cycle Phases

Reading Time: 2 minutes

1. Respond to the following in a minimum of 175 words:

Compare and contrast the phases of the business cycle.

2. Respond to the following classmate:


Valerie
Shuman-wylie

3 hours ago, at 5:02 PM

NEW

Hello Class, There are four phases of the business cycle. Expansion usually occurs when the gross domestic product output is rising. The rise in gross domestic production is two to three percent. It It is typically between the peak and trough. Peak is usually somewhere in the middle, what is meant by that is expansion the rise in gross domestic production comes to a level and then phases into contraction. During the contraction phase gross domestic production peaks and then starts declining. This is when the economy goes into a recession, layoffs happen, unemployment rises, and the stock market falls. The last phase of the business cycle is trough this is when it turns back for the good and goes back into expansion meaning that the gross domestic production is back on the rise or you can say it hit rock bottom before it started inclining again. They are all the same in that they monitor the economy and production of a country and they are different in that there good for the country or bad for the country economically.

3. Respond to the following classmate:


Ethel
Cisneros

6 hours ago, at 2:43 PM

NEW

Hello class and professor, the four stages or the cycle of business, Expansion, Peak, Contrition-Recession and Trough, are what we are talking about in this post and how they evolve what do they mean. How do they compare and contrast.

Expansion is where the business cycle there are increase in economic factors like employment wages profits production and that’s where demand and supply and sales would come into play in this first phase of the cycle, this is the growing cycle per say. This is when business are financially stable to continue to grow and are in good standing with the banks to continue to grow.

Peak is where in the business cycle reaches its highest phase it archives maximum limits of such product and everything is on the up and up seeing more production more sales more employment, this is also where prices can increase of service or good. But there will be a gradual decrease in demand.

Recession in the business cycle this is where the demand exceeds the supply, when the decline of products becomes steady this is when recession phase occurs. This can also be consider a small fluctuation in the market some which will result in decline of demand of services or goods.

Trough, the economic activities decline in the country below the normal level. The rate of groth becomes negative because of the decline the national income also suffers. This is when banks have a hard time collecting from those who owe and when unemployment is high. This is the lowest level in the business cycle.

Thank you,

Ethel