Business Cycle
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is a business cycle?
A business cycle is the recurring pattern of expansion and contraction in economic activity, measured by GDP, employment, and income over time.
What is the average duration of a typical business cycle?
Usually 3 to 10 years from peak to peak.
What are the four main phases of a business cycle?
The four phases are expansion (recovery), peak, contraction (recession), and trough, which together form the complete cycle of economic fluctuation.
Which economist is credited with pioneering modern business cycle theory?
Joseph Schumpeter developed major business cycle wave theories.
What is the 'peak' phase of a business cycle?
The peak is the highest point of economic activity in a cycle, where GDP, employment, and output are at their maximum before a downturn begins.
What is the 'recovery' phase of the business cycle?
Gradual rise in economic activity after reaching the trough.
What is a 'trough' in the context of the business cycle?
A trough is the lowest point of economic activity in a cycle, marking the end of contraction and the beginning of the next expansion phase.
What is meant by 'boom' in the business cycle?
A period of rapid economic growth above the normal trend level.
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