Question

How does longer business cycle affect economic growth?

Answer 1

Business cycle are connected with ups and down of economic activities that shows different phase of economics like boom, recession, depression recovery. each phase has it own benefit or loss. prolonged existing of any phase mentioned here affect the economy in great manner. any business cycle that the economic is facing affect deeply to the economy, taking example pandemic that has occurred in the whole world has affected the various consumption, production, saving and investment activities in the economy,  in the same way one economy is facing boom recession depression or recovery phase economic growth impacts. during the boom all consumption,production , investment, saving and distribution takes place fast. when economy experiences the recession all the activities like consumption, production, investment, saving and distribution slow down and affect the income and employment and reduce the same. in the same way more worsen condition is that the economy faces no demand no production and no income and employment. economy experience the unpredictable economic transaction we called is as depression. it takes several years to recover and stabilize and in last, recovery is also part of business cycle. economy start upsurging and slowly take the pace and increase the demand for goods and services, supply, saving, investment and many more.