CIMA BA1 Syllabus A. Macroeconomic And Institutional Context Of Business - The Trade Cycle - Notes ^{9 / 17}

Trade cycle

A trade cycle is a repeated pattern of changes in economic growth.

Phases of the trade (or business) cycle

• Recession (At point A)

• Depression  (At point B)

• Recovery (At point C)

  - modest growth and improved consumer confidence

• Boom  (At point D)

  - capacity and labour will be fully utilised.

• And then back to Recession again