Question

Business cycles have different time lengths. Explain what a business cycle is and provide an example from Canada or another country of an entire business cycle.

Answer 1

Q.

Answer: Business cycle have different time length, its is the period of time containing a single expansion and contraction in a sequence. The fluctuations, that rapid economic growth means expansion and stagnation or recessions in economy.

* Business cycle;  

Its a term used to describe the ups and downs of the economy over a time period. It consist of repetitions of four phases, that is expansion ( boom) , peak , contraction and trough. And its also called as boom and bust cycle, or trade cycle. In any countries economy, goes in these four phases of business cycle. First of all trough phase after that contraction, after that expansion and last is peak phase.

* Canda , business cycle;

In canada's business cycle, all four phases has been occurred from earlier to present state and the growth pattern of the economy of canada is in wave like pattern of expansion and contraction. And the contraction was the result of great depression of 1929. And then expansion phase came at 1940 by the world war era. Recent contraction occurred at 2008 of financial crisis and then in 2009 again expansion started. This fluctuations cause the alteration to the bussiness cycle of canada.

Hope this will help you.

Thank you.