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Answer to Question #70585 in Macroeconomics for Mel Li
Question #70585
Why can't business cycles fluctuate with the economic system? Why does it have to be the other way?
Expert's answer
Business cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend.
Different phases of the business cycle are the bases for the fluctuations of the economic system. Flow of business cycles eventually leads to fluctuations in economic system. Therefore, these fluctuations do not correspond each other in time.
Different phases of the business cycle are the bases for the fluctuations of the economic system. Flow of business cycles eventually leads to fluctuations in economic system. Therefore, these fluctuations do not correspond each other in time.
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