What is the business cycle?

The stages of the business cycle are boom, recession, slump and recovery.

[@msbbenin6693]

Thank you, thank your video helped me understand the business cycle in just 3minutes. I was always confused with each phase. I'm writing exam papers tomorrow and we were told to prepare for a question about how business cycle works.

[@Learnloads]

+Benin Miss B Glad to help. Hope those exams go well.

[@oside760a]

Great video, simple and to the point!

[@thallita_amarillys]

great video about business cycle, now I understand it!!

[@Learnloads]

+Thallita Amarillys Thank you!

[@GforGenius_]

Aweeeeeeesome!!!!!!

[@samthelegoman1]

how does slump turn into recovery? What causes output to rise?

[@Learnloads]

There is no simple answer to this question really Samuel. Plenty of political leaders around the world would love to know! Bear in mind we are looking at a whole economy here - not an individual firm. The short answer is an economy recovers when overall demand increases. Governments can do things that will help but the real issue is basically whether businesses become more competitive - better at meeting demand. That in turn relates to things like investment, productivity and costs. This video seeks to just briefly describe the stages of the business cycle. To understand what causes an economy to move from one stage to another is more involved. Depends on the context of the country concerned, period in history and so on.

[@rafayajmal1839]

What is the answer to the last question?

[@adilafkar1702]

so wait how does rolls royce survive during reecession

[@Carling2001]

Luxury brands do little during a recession except promote their lower brands more aggressively--if they have them. They may offer longer credit terms or a promotion. However, this may damage their reputation. Besides, people who buy rolls royces aren't really affected by a recession. Hope this helps!

[@lucasella1332]

What prorgram was used to create this>

[@Learnloads]

Powtoon

[@lucasella1332]

@@Learnloads muchas gracias papi

[@lucasella1332]

@@Learnloads lol jk cant make an accoutn website is broken

[@rafayajmal1839]

I have exam tomorrow and this question could come. Reply quickly!!

[@Learnloads]

The RR question is just designed as a discussion point for students - there is no "right answer". One thing to bear in mind is that the business cycle shows what happens across the whole economy, not every single firm. In other words, SOME individual firms may improve sales in a recession and SOME firms do badly in a boom. Also, what happens across different economies may involve different stages of the cycle. Rolls Royce exports many of its products.

[@lukefilsak2102]

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