BUSINESS CYCLES PART 1
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 refers to the recurring and fluctuating levels of economic activity that an economy experiences over time, typically consisting of phases of expansion and contraction.
What is the 'expansion' phase in a business cycle?
Phase where output, employment, and income rise steadily.
What are the four main phases of a business cycle?
The four main phases are expansion (recovery), peak, contraction (recession), and trough, which together form a complete cycle of economic activity.
Who introduced the concept of business cycles in modern economics?
Wesley Mitchell systematically studied business cycles in 1913.
What is the 'peak' phase in 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 the economy starts to contract.
What is the Kitchin cycle in business cycle theory?
A short inventory cycle of approximately 3 to 4 years.
What is the 'trough' in a business cycle?
The trough is the lowest point in a business cycle, marking the end of a contraction and the beginning of a new expansion phase.
What is the Juglar cycle in economics?
A medium-term business cycle lasting approximately 7 to 11 years.
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