What are the components of the business cycle .
Answers
Answer:
business cycle are identified as having for phases...peak, trough, contraction, and expension.
Answer:
the four stages of the economic cycle are also referred to as the business cycle. These four stages are expansion, peak, contraction, and trough.
pls read this for understanding the concept
The Business Cycle
The term “business cycle” (or economic cycle or boom-bust cycle) refers to economy-wide fluctuations in production, trade, and general economic activity. From a conceptual perspective, the business cycle is the upward and downward movements of levels of GDP (gross domestic product) and refers to the period of expansions and contractions in the level of economic activities (business fluctuations) around a long-term growth trend.
Expansion
Normal Maintenance is busy and has recently had to turn down jobs because it lacks the capacity to do all the work offered. Homeowners now want to make home repairs and improvements which they had had to put off during the sour economy. With the economy improving, others are fixing up their homes to sell. Faced with so much demand, the owner of Normal Maintenance must decide whether to pay his existing workers overtime (which will increase the costs for each job and reduce profits) or hire additional workers