A1amuXHCMAAqdR6The trade cycle refers to the ups and downs in the level of economic activity which extends over a period of several years. This is also known as Business Cycle or Economic Cycle.

Definition: The term business cycle (or economic cycle) refers to economy-wide fluctuations in production, trade and economic activity in general over several months or years in an economy organized on free-enterprise principles. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth (an expansion or boom), and periods of relative stagnation or decline (a contraction or recession). Continue reading

Advertisements