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Business cycle

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Business cycle
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  • Here, let me show you
  • What's the business cycle?
  • The first stage is Expansion
  • Think of it like a wave that all economy's follow
  • It is where there is a increase of economic activity
  • What's the first stage?
  • Indeed it is, but sadly things can only get worse
  • The second stage is the peak
  • This is right before decline when business is still booming
  • Wow! this is great
  • What's the second stage?
  • The third stage is recession
  • Sadly they can
  • It is when a significant decline in economic activity spread across the economy
  • Oh no! but things can't get worse, right?
  • What's the third stage?
  • It's a severe and prolonged downturn in economic activity
  • The fourth stage is depression
  • It will, but after this the next stage will be the last time it gets worse
  • I am guessing it can still get worse
  • What's the fourth stage?
  • Trough is the lowest point in an economy This though is good because it signals that it can only get better After this it goes into a recovery where it loops back into an expansion
  • Yep it is a never ending cycle in an economy
  • The fifth and sixth stage is trough and recovery
  • So it just keeps repeating?
  • What's the fifth and sixth stage?
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