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 businrss cycle? Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in idustries producing consumer nondurables?
The four phases of a typical business cycle, starting at the bottom, are trough, recovery, peak, and recession. The length of a complete cycle varies from about 2 to 3 years to as long as 15 years ...
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