Liikesykli

Liikesykli, also known as the business cycle, refers to the fluctuations in economic activity that an economy experiences over time. These fluctuations are characterized by periods of expansion (growth) and contraction (recession). A typical business cycle consists of four phases: expansion, peak, contraction, and trough.

During the expansion phase, the economy experiences rising employment, increasing industrial production, and growing incomes. Businesses invest more, and consumer spending tends to be high. This phase continues until the economy reaches its peak, which is the point of highest economic activity.

Following the peak, the economy enters a contraction or recessionary phase. During a recession, there is a general decline in economic activity, characterized by falling employment, reduced industrial output, and lower consumer spending. Businesses may cut back on production and investment, and unemployment rates typically rise.

The contraction phase eventually reaches its trough, the lowest point of economic activity. After the trough, the economy begins to recover and enters a new expansionary phase, starting the cycle anew. The length and intensity of these cycles can vary significantly. Factors influencing the business cycle include changes in consumer confidence, government policies, technological advancements, and international economic conditions. Economists study these cycles to understand economic trends and to inform policy decisions aimed at stabilizing the economy.