Question 1
The terminology business cycle is used to denote the fluctuations in the economy in production or any other economic activities over a given period of time. These fluctuations occur around a long-term expansion trend and often involve changes over time between periods of high and vigorous growth and periods of relative stagnation (Tvede, 2006, p 7). The components of a business cycle include boom, recession and recovery. Boom refers to the economic period where businesses are experiencing large sales which results in high profit margins. During this period, the levels of employment are relatively high (Freiber, J. & Freiberg, K., 2007, p 41). Business ...
