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What is economic cycle?

An economic cycle is the circular movement of an economy as it moves from expansion to contraction and back again. Economic expansion is characterized by growth and contraction, including recession, a decline in economic activity that can last several months. Four stages characterize the economic cycle or business cycle.

What is a business cycle in economics?

The economic or business cycle refers to the cyclical pattern experienced by the economy. The economy remains in an expansion phase until it reaches its peak, reversing to the downside and entering a contraction before a trough, and begins to expand once again.

What is the cyclical pattern of money stock?

2.1.1 Cyclical Pattern of the Money Stock The outstanding cyclical fact about the stock of money is that it has tended to rise during both cyclical expansions and cyclical contractions.

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