Bussiness Cycle

            In the market economy, there are four phases of the business cycle. Sometimes an economy grows, at other times it slows down, and these recurring changes are what make up the business cycle. In the business cycle, there are four phases, and these phases are prosperity, recession, depression, and recovery.
             Prosperity is also known as expansion, and it is the time when the economy is at its best. Throughout the nation, unemployment is low, there is an increase in the output of goods and service, and consumer spending is high. This phase is sometimes called Peak Prosperity, and during Peak Prosperity, it is a good time for new businesses to start up. As the activity of businesses slows down, there is the danger that the economy will move into the second phase, recession. .
             Recession is the period of economic slowdown. Unemployment starts to rise there are fewer goods and services being produced, and consumer spending decreases. Recessions usually lasts for about six months. This phase leads into the third stage, depression.
             Depression is the next step in the business cycle. It is a period of prolonged recession. During a depression, consumer spending is extremely low, unemployment is really high, and the production of goods and services is low. Poverty results because many people are out of work, and can't afford to buy food, clothes or shelter. Eventually, the gross domestic product will slowly increase, and this shift in the economic cycle leads to a period called recovery. .
             2.
             Recovery is the period of renewed economic growth, and is characterized by reduced unemployment, increased consumer spending, and businesses expanding. During this stage, businesses pick up, people find jobs, the poverty level goes down, and the demand for goods increases. .
             These phases are what keep the economy going. If the economy didn't flourish at times, or didn't die down and lose money, it would be rather boring.