💼The business cycle represents the natural fluctuations of the economy between periods of expansion and contraction.
📈During the expansion phase, the economy grows, leading to higher employment rates and increased consumer spending.
📉Contraction is characterized by a decline in economic activity, higher unemployment rates, and reduced consumer spending.
📊The business cycle can be influenced by various factors, including government policies, business investments, and global economic conditions.
🔄Understanding the business cycle helps businesses and policymakers make informed decisions and prepare for potential economic changes.