IBE Presentation=Business Cycle-1
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Transcript of IBE Presentation=Business Cycle-1
Business CycleBusiness CycleBusiness CycleBusiness Cycle
Presented by – Presented by –
Narender SaharanNarender Saharan
TopicsTopics
Definition Of Business Cycle
Features Of Business Cycle
Phases Of Business Cycle
Business CycleBusiness Cycle
Definition:Acc. To KEYNES, “A Buss. Cycle is
composed of a period of good trade characterized by rising prices & low employment percentage, alternating with a period of bad trade characterized by falling prices & high unemployment percentage.”
Business CycleBusiness CycleFeatures:A Buss. Cycle exhibits a wave like
movement.The gap between Prosperity &
Depression.Downward movement is quicker & upward
movement is slower.Buss. Cycles are International in
character.Profits fluctuate more than other incomes.
Business CycleBusiness CyclePhases:
Prosperity
Recession
Depression
Recovery
Business CycleBusiness CycleProsperity:
Ideal for Business.Demand grows & Economy expands.New products introduced & Markets
are created.Rapid rise in incomes of people &
people increase their consumption.
Business CycleBusiness CycleRecession:
It is contraction phase of Buss. Cycle.
Decline in country’s GDP.Decline in Prices, Demand, Investment, Employment.
Business CycleBusiness CycleDepression:
GDP of a country drops by at least 10%It is a result of Recession for a long
period.Decline in Production, Employment,
general Price level, Profits of producers & traders.
Business CycleBusiness CycleRecovery:Rise in:Demand for Consumption goodsInvestmentsEmploymentIncomeProduction