Definition of Economic cycle:
A cycle of alternating periods of economic growth and recession; compare trade cycle, 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.
Recurring, fairly predictable, general pattern of periodic fluctuations (as measured by gross national product) in national economies. Left to themselves, all market economies repeatedly (typically every five years) move through four stages of (1) expansion, (2) peak, (3) recession, and (4) recovery. Despite numerous attempts to explain causes of economic cycles, no theory is universally accepted or applicable. Also called business cycle or trade cycle.
The economic cycle is the fluctuation of the economy between periods of expansion (growth) and contraction (recession). Factors such as gross domestic product (GDP), interest rates, total employment, and consumer spending, can help to determine the current stage of the economic cycle.
How to use Economic cycle in a sentence?
- Insight into economic cycles can be very useful for businesses and investors.
- Economic cycles are a major focus of economic research and policy, but the exact causes of a cycle are highly debated among the different schools of economics.
- Economic cycle refers to the overall state of the economy going through four stages in a cyclical pattern.
Meaning of Economic cycle & Economic cycle Definition