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Business Cycle (in Hindi)
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Different levels of economic activities

Aartee Mishra is teaching live on Unacademy Plus

Aartee Mishra
Delhi University Topper Post Graduated in History Founder - Rank secure IAS Academy 4 Years Experience Use code : RANK10 for Mentorship

Unacademy user
Mam art and culture ki class phir kb hogi
mam fisical policy ka kon sa luctre ha mil nhi rha yha ap reply nhi kerta
aartee mam bhee upsc aspirant hain...
Shilpi Verma
3 months ago
mam apne kch basic cheeze like msp and mrp chod di h
shop nahi vo thela he kholenge...👍
in one shop 2 thela! too much smart is not good bro!
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  4. aily Lecture Series Ramesh Singh's) A brief Summary of Indian Economv Inflation and Business Cycle-D indi unacadeny By Aartee Mishra

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  6. BUSINESS CYCLE Economies fluctuate between the best and the worst levels of economic activities which is known in economics as boom and depression, respectively They can be called different phases of the economic activities of the economies. In between boom and depression, there might be many other situations of the economic activities, such as-stagnation, slowdown, recession and recovery The fluctuations in the level of economic activity between the depressions and booms has been called by the economists as business cycle or trade cycle with recession and recovery as the main intermediate stages Stagnation and slowdown may be considered as other intermediate stages of the business cycle. We intend here to understand the actual meanings of each of the stages. Economists have pointed out that the business cycle is characterized by four phases or stages in which economies alternate:

  7. Depression Though depression has visited the world economy only once in 1929, economists have pin-pointed enough number of traits to recognise it. The major traits of depression could be as given beloW: an extremely low aggregate demand in the economy causes activities to decelerate the inflation being comparatively lower I. the employment avenues start shrinking forcing unemployment rate to grow fast /. to keep the business going, production houses go for forced labour-cuts or retrenchment (to cut down production cost and be competitive in the market,) etc The economic situations become so chaotic in the phase of depression that governments have almost no control over the economy. The Great Depression of 192976 gave rise to the ideas of strong government intervention77 in the economy, such as deficit financing, monetary management, etc.

  8. Recovery An economy tries to come out of the low production phase to survive. The low production phase might be depression, recession or slowdown with the former being the worst and rare, governments take many new fiscal and monetary measures to boost demand and production and ultimately a recovery in an economy is managed. The business cycle of recovery may show the following major economy traits: . an upturn in aggregate (total) demand which has to be accompanied by increase in the level of production Il. production process expands and new investments become attractive Il. as demand goes upward, inflation also moves upward making borrowing cheaper for investors IV. with an upturn in production, new employment avenues are created and unemployment rate starts declining; etc.

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