Business Cycle

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<ol>&NewLine;<li>Peaks <&sol;li>&NewLine;<li>Trough <&sol;li>&NewLine;<&sol;ol>&NewLine;<h3><span style&equals;"font-weight&colon; bold">Recession<&sol;span><&sol;h3>&NewLine;<p> is downturn time period from 2 to 12 months&period; Economically speaking&comma; a decline in income&comma; employment and total output &period; If Recession last longer than that&comma; it is called <strong>Depression&period;<&sol;strong> In the business Cycle graph above we can see that the contraction part is basically the situation which goes through the time period of Recession&period;<&sol;p>&NewLine;<p> Expansion is the progressive part of business cycle which can be interpreted as an improvement in the Income&comma; Output and Employment&period; Peak and trough is the turning point in the cycle&period; Peak leads to contraction or recession and trough leads back to the expansion period&period;<&sol;p>&NewLine;<p> &lbrack;large&rsqb;<&sol;p>&NewLine;<h3><span style&equals;"font-weight&colon; bold">Characteristics of&nbsp&semi; a Recession<&sol;span><&sol;h3>&NewLine;<ul>&NewLine;<li>Investment falls sharply&period; Housing Prices are the first to decline either because of the financial crisis or the interest rate has been raised by the Central Bank&period; <&sol;li>&NewLine;<li>Consumer purchases often decline&period; As businesses slow production lines&comma; real GDP falls <&sol;li>&NewLine;<li>Employment usually falls in early stages of recession <&sol;li>&NewLine;<li>As output falls&comma; this leads to a slow down of inflation too <&sol;li>&NewLine;<li>Business profit Falls sharply <&sol;li>&NewLine;<li>As business condition sees a downfall&comma; the central bank begins to lower short term interest rate to stimulate investment so as to move the fluctuation to the expansionary period&period; <&sol;li>&NewLine;<&sol;ul>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;