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The business cycle

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The business cycle
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  • Hi! I'm Alycia and today I am going to be walking you through the phases of the business cycle.
  • A business cycle is the periodic growth and decline of a national economy, measured mainly by its GDP.
  • In 2019, the GDP was 21,433.2
  • Take the year 2019 for example. This is the last year we had that was normal before Covid.
  • Businesses and everything else was normal. People were free to go everywhere without a mask.
  • In the year 2020, the GDP decreased to about 20.9 trillion U.S dollars. This is because the pandemic hit. Since people were sick, and other were trying to keep from being sick....
  • Businesses slowed down, employees were laid off, and some businesses were even forced to close. This completely threw the business cycle off. Because of the pandemic, and how badly it affected the economy
  • The four phases of the business cycle are expansion, peak, contraction, and trough.
  • The U.S is in a mid cycle expansion. During a mid-cycle phase, the economy exits recovery and enters into expansion, characterized by broader and more self-sustaining economic momentum but a more moderate pace of growth.
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