Principles of Macroeconomics

What is a business cycle ? What are the prospects for the economy of Nigeria

Business cycle refers to the short-term upward and downward fluctuations of an economy . It variously covers the expansion - also called boom ' - and the contraction - also called recession ' or slump ' - of the economy (Principles of Economics ) Thus economically advanced countries are those whose business cycles during the past years have consistently delivered positive growth figures thereby ushering in periods of economic expansion . Such expansion brings in improvements in the country 's economic indicators , such as

increased Gross Domestic Product (GDP ) and increased Gross National Product (GNP . Increases in these two critical economic barometers results to other favorable factors that are evidences of a dynamic economy , such as increased employment and increased per capita income

On the other hand , economically poor countries experience slow growth or worse , negative growth in their business cycles . The people of these countries do not enjoy similar access to numerous job opportunities and to increasing per capital income . Consequently , their business cycles mostly result to contractions - they do not reap the same increases in their periodic GDP and GNP figures

As the country that is generally believed to have more economic potential that any other country in Africa , Nigeria is yet to experience consistent economic expansion in its business cycles (Eicher Liedholm 1970 . Accomplishing this has been made difficult by setbacks that have been crippling the country 's economy . Records show that Nigeria 's economy in 1988 yielded a decline in...