Explain what is business cycle

Business Dec 23, 2020

Explain what is business cycle.

Expert Solution

The business cycle in the economy includes four phases of the economy. These four phases are - expansion, peak, contraction, and trough. Every economy goes through these cycles. The regular economic fluctuations harm the economy; thus, it is upon the government to take comprehensive measures to combat the business cycle. The government and the central bank should try to maintain stability in the economy by using fiscal and monetary measures in order to avoid business cycles.

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