Economic trade cycle includes the fluctuations in the economic activity and it has four phases.
There are four phases in trade cycle. First phase is BOOM, which is the face of high growth. Second phase is the PEAK, in which the trade cycle is on the top. Third phase is DOWNTURN or RECESSION, which is the fall in the economic growth. The last and fourth phase is RECOVERY, which is the upturn of economic growth.
In all of these phases there is different economic growth. Although there is neither a precise movement of activity level nor there is regular patterns but still terminology, Economic trade cycle can give a clear distinction between boom and slump over a period of time.
There are four phases in trade cycle. First phase is BOOM, which is the face of high growth. Second phase is the PEAK, in which the trade cycle is on the top. Third phase is DOWNTURN or RECESSION, which is the fall in the economic growth. The last and fourth phase is RECOVERY, which is the upturn of economic growth.
In all of these phases there is different economic growth. Although there is neither a precise movement of activity level nor there is regular patterns but still terminology, Economic trade cycle can give a clear distinction between boom and slump over a period of time.
