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11 June, 20:17

1. Identify the phases of the business cycle and the problems caused by cyclical fluctuations in the market economy.

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  1. 11 June, 21:16
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    Business cycle is identified by the four phases, namely: peak, trough, contraction, and expansion.

    Explanation:

    The business is in expansion when the cycle moves from trough towards the peak position. When the business reaches to peak then it is called as the overheated phase of the business cycle.

    It is hard to maintain and sustain the business in this level of heat. The cycle fluctuation occurs in a long period and is usually measured by considering the growth rates and gross products.
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