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How often has changes in the business cycles occurred in the last 80 years?
How often has changes in the business cycles occurred in the last 80 years?
Expert Solution
Since the 1940s, the U.S. economy has experienced 12 business cycles, including the current one. According to the national bureau of economic research, the economy has had 12 peaks in the since 1945, Starting Feb 1945 up to the most recent, Feb 2020. The peaks are spread across the years on different months but all had same economic effects; such as full employment, and increased production among others.
Additionally, the economy has also experienced eleven recessions since World War II. The corona virus-induced recession has been the twelfth. Therefore, we can conclude that the economy has experienced 12 cycles. Business cycles are made of Peaks, trough, recessions, and expansions.
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