On Timing Cycles. What makes identifying parts of the business cycle so challenging?

Running head : Business cycle

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In economics , business cycle is defined as the recurring levels of economic activity experienced by an economy in a given country over a long period of time . There are five parts or stages of business cycle which include expansion , peak , recession , trough and recovery . Economic growth is not a steady phenomenon and exhibits patterns of expansion peak and contraction . The five phases of economic growth cannot be identified easily as a result of certain challenges . It becomes so challenging to

identify the five phases of economic growth due to certain reasons . First , business cycles reflect the recurring rise and fall of economic activities , which is not easy to identify . Economic activities in this aspect relates to production , wages , prices , profits employment and any other macroeconomic activity . The cycles are recurring , nonperiodic and one cycle should be more than one year making it difficult to measure a season of expansion or contraction

Business cycles reflect the inability of market place to accommodate shifting markets for new and substitute products , advanced technologies and changing needs of occupational skills (Knoop Todd A , 2004 Technology and occupational skills are major challenges in determination of economic growth because of their rapid change . Business cycles are irregular , vary in frequency , duration and magnitude as a result of rapid change in major economic factors . This is a major challenge to economists and government when they try to measure the level of economic growth . Business cycle is measured in form...