what is trade cycle?Explain with the help of diagram.
Answers
Answer:
The business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. The length of a business cycle is the period of time containing a single boom and contraction in sequence.
The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression! The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression.
Answer:
Business cycles are characterized by boom in one period and collapse in the subsequent period in the economic activities of a country. ... These fluctuations in the economic activities are termed as phases of business cycles. The fluctuations are compared with ebb and flow.