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The four phases of the cycle are expansion, peak, contraction, and trough. Factors, for example, GDP, financing costs, absolute work, and customer spending, can assist with deciding the ongoing phase of the monetary cycle.

The key features of Business fluctuations are -

They happen occasionally however not at normal time stretches. This implies that times of expansion are trailed by a peak which is then trailed by times of contraction and trough.

These fluctuations might go from at least two years to a limit of ten to twelve years. Fluctuations are self-building up: Business cycles are self-supporting in nature. This implies that every expansion and contraction creates a further development in a similar bearing until the cycle is turned around by an outside force.