Aristiyana

A boom is characterized by a period of rapid economic growth whereas a period of relatively stagnated economic growth is a recession. The business cycle is the natural expansion and contraction of the production and output of goods and services that happens over a period of time. Visualization The Business Cycle Log Spiral As workers lose their jobs earned income decreases and non working consumers can no longer afford goods produced by businesses. Business cycle contraction . Employers cause an increase in an economy s unemployment by reducing the number of their employees. An expansion is characterized by increasing employment economic growth and upward pressure on prices. This cycle is generally separated into four distinct segments expansion peak contraction and trough. The business cycle is caused by the forces of supply and demand the movement of the gross domestic product gdp the availability of capital and expectations about the future. The contraction phase of the...