What Is Business Cycle

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Business Cycle

The business cycle or economic cycle refers to the ups and downs in most parts of an economy.

Phases In Business Cycles

There are basically four phases in business cycles.

1) Boom
2) Contraction
3) Recession
4) Recovery

Boom is a phase when the business is growing rapidly.

Contraction is a phase when the business growth starts declining.

Recession is a phase when the business growth is declining rapidly.

Recovery is a phase when the business again starts growing after the decline in growth.

So above are the Four Phases of Business Cycle, it relates to all types of economic, Industry and Businesses.

You can observe these four phases in every market cycle.

Hope this helps!


Gurpreet S. Saluja

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