Please explain why after such unprecedented economic growth, technical advance, and expansion of the size and scope of government since the 1930's do economies still experience economic cycles and stagnation.
There are four components of business cycle:
A recession or stagnation is a situation of slowing down of the aggregate demand consistently in the preceding years. It also leads to the loss of business confidence. Depression is any economic downturn where real GDP declines by more than 10 percent. A recession is an economic downturn that is less severe. (Economics. About.com). It is visible in industrial production, employment, real income and wholesale-retail trade. On the other hand recovery and there on expansion means increase in the activity of the economy. It means increase in the business confidence and the transactions, stock market sentiment, increase in the demand for industry and service sector. Overall there is a growth in the economy. The most heightened phase in Boom where there is explosive growth.
Yes economies still experience economic cycles and stagnation as discussed above. The reasons of economic stagnation
Thus economic stagnation is a period of slow economic ...
The unprecedented economic growth, technical advance, and expansion of the size and scope of government since the 1930's are rationalized.