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Business Cycles
Business Cycles
What is a business cycle? As one examines almost any business chart which shows graphically such business data as production, sales, prices, or interest rates, one is impressed with the fact of a wavelike movement. There are ups and downs, and, more than that, the ups and downs manifest a considerable regularity. This is merely a graphical expression of the fact that the history of business is a record of recurrent periods of normal activity, booms, and depressions. Most of the time, business activity in the United States, at least, is found to be either rising from a relatively depressed condition toward a peak or falling from a relatively prosperous condition toward a bottom. This wavelike movement of business has given rise to the theory of the business cycle.
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