What are the 4 phases of business cycle?
The four stages of the economic cycle are also referred to as the business cycle.
These four stages are expansion, peak, contraction, and trough.
During the expansion phase, the economy experiences relatively rapid growth, interest rates tend to be low, production increases, and inflationary pressures build..
What 4 factors affect the business cycle?
Variables affecting the business cycle include marketing, finances, competition and time.Finances. Sales growth is usually slow during the introductory stage of the business cycle because the consumer market needs time to learn about and consider buying the product. … Marketing. … Competition. … Time.
What is the importance of business cycle?
One of the primary reasons the business cycle is important to businesses is that it can have a significant influence on consumer demand. High levels of unemployment and underemployment mean consumers have less money to spend on products and services, which tends to reduce consumer demand.
What are the features of a business cycle?
The four different phases of business cycles are – expansion, peak, depression, and recovery. While all these phases have their own unique characteristics, there are some features that are common to all the phases.
What is the business cycle quizlet?
Terms in this set (10) Business cycle. a cycle or series of cycles of economic expansion and contraction. Expansion. An economic expansion is an increase in the level of economic activity, and of the goods and services available.
What are the four phases of the business cycle quizlet?
The four phases of the business cycle are peak, recession, trough, and expansion.