Slide 1 : Business Cycles: Meaning and Nature
Meaning : Meaning “The business cycle in the general sense may be defined as an alternation of periods of prosperity and depression of good and bad trade.”
Types of Cycles : Types of Cycles The Short Kitchin Cycle
The Long Jugler Cycle
The Very Long Kondratieff Cycle
Building Cycles
Kuznets Cycle
Phases Of A Business Cycle : Phases Of A Business Cycle Expansion or prosperity or the upswing
Recession or upper-turning point
Contraction or depression or downswing
Revival or recovery or lower-turning point
Slide 5 : E O Time Economic Activity prosperity trough recovery peak prosperity recovery trough depression recession
Recovery : Recovery The levels of employment, income and output rise steadily in the economy.
Prosperity : Prosperity Demand, output, employment and income are at a high level.
Seeds of recession : Seeds of recession Scarcities of labour, raw materials, etc. leading to rise in costs relative to prices;
Rise in the rate of interest due to scarcity of capital, and
Failure of consumption to rise due to rising prices and stable propensity to consume when incomes increase.
Recession : Recession Investment, employment, income and demand decline.
Depression : Depression There is considerable reduction in the production of goods and services, employment, income, demand and prices.
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