Trade Cycle:

Trade Cycle

What is Trade Cycle? Meaning

The alternating periods of expansion and contraction in the economic activity has been called business cycles or trade cycles.

 

trade cycle

The period of high income, high output and high employment is called as the Period of Expansion, Upswing or Prosperity.

The period of low income, low output and low employment is called as the Period of Contraction, Recession, Downswing or Depression.

Definition of Trade Cycle:

According to Keynes,

"A trade cycle is composed of periods of Good Trade, characterized by rising prices and low unemployment percentages, shifting with periods of bad trade characterized by falling prices and high unemployment percentages."

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