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Explain the difference between the business cycle and economic growth

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Explain the difference between the business cycle and economic growth.

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The business cycle is a concept used in economics to describe the general behavior of the national economies. The business cycle is based on the GDP fluctuations of a country. That is to say, it encompasses and classifies the downward and upward movements of the GDP. Business cycles have four main stages. The first one is an expansion which is a GDP growth. The second is the peak, which is the highest point of the GDP growth. The third state is the decline, which is when GDP starts to slow down. And the fourth stage is the trough which occurs when the economy reaches the lowest point of the economic contraction. On the other hand, economic growth is the increase in the production of final goods and services measured by the GDP. That is to say, economic growth occurs when the real GDP of a country increases compared to the previous period recorded. Therefore, economic growth is only one part of the business cycle. The business cycle includes other GDP status and not only an increase.