What are the four phases of the business cycle? How long do business cycles last? How do seasonal variations and long-run trends complicate measurement of the business cycle? Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables?

Question

Gisselle Proctor

Business

22 June, 08:29

What are the four phases of the business cycle? How long do business cycles last? How do seasonal variations and long-run trends complicate measurement of the business cycle? Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables?

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Answers (1)

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Xavier Jenkins · Answer 1

As explained below.

Explanation:

The four cycles of the business cycles are the peak, recession, and recession, and the expansion and their length vary with the time and patterns of flow. The seasonal variation in the cycle accompanied by the long terms trends also complicates the business cycle as the people are not [prepared to shift in the cycles they are expected. This cycle also affects the output and the employment in terms of the capital goods along with the industries that produce the consumer's durables as the quality and quantity of the goods will decline but not as the purchase of the capital goods and consumer durables.