Economic Cycle

An economic cycle, also called a business cycle, describes the fluctuations in economic activity over time. It consists of periods of expansion (growth, rising employment, and higher output) followed by contraction (decline, higher unemployment, and reduced output). These cycles are driven by factors like consumer spending, investment, government policies, and global events. The cycle helps understand how economies grow and sometimes slow down, influencing decisions by businesses, governments, and individuals. While these cycles are natural, their timing and intensity can vary, impacting everything from job availability to interest rates.