THE economics discipline involves studying economic or business cycles. An economic cycle is defined as the fluctuation of the economy between periods of expansion (growth) and contraction (recessions).
It is usually measured with the Gross Domestic Product (GDP) of a country. Generally, an economic cycle goes through four stages namely expansion, peak, contraction and trough. Once the cycle is complete, it continues from the start again.
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There is no definite rule that exists in determining how long each phase lasts. In fact, expansion phases can last many years before hitting a peak. However, a healthy economy will always go through a contraction phase occasi
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