Hiba ShaikhI.D: 1310-bba009

Subject: MacroEconomics

Topic: Business cycle

Definition:Business cycle is defined as ups and down in the

economic growth

For example:It shows that economic activity is at the BOOM

Shows that economic activity is falling

Economic activity is going to fallEconomic

activity is going to rise

An other example with graph:

This graph shows peaks and trough of actual output through a potential

level of output (trend growth) and this whole process is called business cycle