how is economic growth affected by business cycles?

Question

butterflydreamer · Answer

do you the different parts of a business cycle?

anonymous · Answer

what??

butterflydreamer · Answer

... like... boom, troughs, contraction and expansion? .. LOL

anonymous · Answer

0k lol

butterflydreamer · Answer

The business cycle is basically recurring periods of boom and recession through which an economy passes.
The business cycle looks like this generally: 
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So basically, 
An expansion results in 
- Increased GDP
- Increased Income
- Increased employment, decreased unemployment
- Increased demand
- inflation
- Economic growth increases. 

A contraction (opposite of an expansion) results in
- decreased GDP
- decreased savings
- decreased employment, increased unemployment
- decreased income
- lower inflation
- decreased output
- economic growth decreases