given the definition of trade cycle given by Heberler
Answers
Answer:
Haberler has said – “The business cycle in the general sense may be defined as an alternation of period of prosperity and depression of good and bad trade.” ADVERTISEMENTS: 2. In the words of W. C. Mitchell – “Business cycles are a species of fluctuations in the economic activities of organised communities.
Explanation:
Haberler has said – “The business cycle in the general sense may be defined as an alternation of period of prosperity and depression of good and bad trade.”
the words of W. C. Mitchell – “Business cycles are a species of fluctuations in the economic activities of organised communities. The adjective ‘business’ restricts the concept of fluctuations in activities which are systematically conducted on a commercial basis. The noun “cycles” bars out fluctuations which do not recur with a measure of regularity. Prof. Mitchell thus insists upon a measure of regularity in cyclical fluctuations.”
According to Keynes – “A trade cycle is composed of period of good trade characterised by rising prices and low unemployment percentages, altering with periods of bad trade characterised by falling prices and high unemployment percentages.” Keynes has thus specified two indices, namely prices and unemployment, for measuring the upswing and down swing of the business cycles
words of Frederic Benham “A trade cycle may be defined, rather badly as a period of prosperity followed by a period of depression. It is not surprising that economic process should be irregular trade being good at sometime and bad at others.”
In short the business cycle, is an alternate expansion and contraction in overall business activity, as evidenced by fluctuations in measures of aggregate economic activity such as gross product, the index of industrial production and employment and income