Business Cycle


The concept defines and describes the business cycle and reviews different explanations, types and leading theories that explain business cycles.

Technique Overview

Business Cycle

Business Cycle Definition

Business Cycles are short-term economic fluctuations around a long-run growth trend that correspond to changes in economic conditions. These fluctuations are irregular and unpredictable (Mankiw, 2011). The difference between a business cycle and a trend is what is known as the output gap. Economic cycles, as they can also be termed, are a continuous set of expansions and recessions (real income and GDP decline while unemployment rises); Conway (2009) states that if an economy contracts for two consecutive quarters then it is technically in recession.

Business Cycle Description *

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Business Evidence

Business Cycle Strengths *

Business Cycle Weaknesses *

Examples of Business Cycle *

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Business Application

Business Cycle Implementation *

Success Factors of Business Cycle *

Measures of Business Cycle *

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Professional Tools

Business Cycle Videos *

Business Cycle Downloads *

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Further Reading

Business Cycle Web Resources *

Business Cycle Print Resources *

Business Cycle References (4 of up to 20) *

  • Brittan, S. (2009) Patterns in the eye of the beholder. Financial Times, Dec 10. Available at: [Accessed on 5 November 2011].
  • BusinessWeek (2002) Restating the '90s. Apr 1. Available at: [Accessed on 5 November 2011].
  • Conway, E. (2009) 50 Economics Ideas You Really Need to Know. Quercus.
  • Fiorito, R., Kollintzas, T. (1994) Stylized Facts of Business Cycles in the G7 From a Real Business Cycles Perspective. European Economic Review, 38(2), pp. 235-269.

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