Business Cycle in Theory

The business cycle is a nonrepeating cycle of expansion from commercial activity to economic recession, which shows various upward trends. As part of the business cycle, the recession starts as the investment increases, and the economic recession expands as investment increases. From 1929 to 1933, GDP declined by 30% and the economy entered the Great Depression which continued until the Second World War. There have been ten recessions since 1945. To some extent, the 1990s like the 1920s included rapid economic growth and unprecedented prosperity (). From a conceptual point of view, linking innovation-based growth to business cycle theory is not new. The history of this idea can be traced back to at least Schumpeter (1934). Aghion and Howitt (1991) reviewed several attempts to unify growth and business cycle. Implementation cycle theory of Shleifer (1986) is an example of the conceptual relationship between (endogenous) business cycle and innovation-based growth theory. Cycle of repea ted innovation in enterprises due to externality of demand. Because we are looking forward to prosperity, prosperity will be self-fulfilling. However, to our knowledge, this is the first study to integrate diversity-based endogenous growth base and elements of the RBC method (note the attention to exogenous total productivity as the only uncertain factor Including). Because many people believe that there is an economic cycle, the economic cycle theory is important. This is not a permanent belief. In the 19th century, the economic cycle was not regarded as an economic cycle at all, but it was regarded as a spell of crisis that hampers the steady development of the economy. In the next few years economists and non economists began to believe in the regularity of these crises and analyzed how they relate to the segregated and changing economic structure. In society, it is said that history is constantly repeated. This is a business cycle that repeats the cycle that has been going on fo r many years, from the economic downturn to recovery and expansion. It will never end, it will not stop repeating Business Cycle in Theory The business cycle is a nonrepeating cycle of expansion from commercial activity to economic recession, which shows various upward trends. As part of the business cycle, the recession starts as the investment increases, and the economic recession expands as investment increases. From 1929 to 1933, GDP declined by 30% and the economy entered the Great Depression which continued until the Second World War. There have been ten recessions since 1945. To some extent, the 1990s like the 1920s included rapid economic growth and unprecedented prosperity (). From a conceptual point of view, linking innovation-based growth to business cycle theory is not new. The history of this idea can be traced back to at least Schumpeter (1934). Aghion and Howitt (1991) reviewed several attempts to unify growth and business cycle. Implementation cycle theory of Shleifer (1986) is an example of the conceptual relationship between (endogenous) business cycle and innovation-based growth theory. Cycle of repea ted innovation in enterprises due to externality of demand. Because we are looking forward to prosperity, prosperity will be self-fulfilling. However, to our knowledge, this is the first study to integrate diversity-based endogenous growth base and elements of the RBC method (note the attention to exogenous total productivity as the only uncertain factor Including). Because many people believe that there is an economic cycle, the economic cycle theory is important. This is not a permanent belief. In the 19th century, the economic cycle was not regarded as an economic cycle at all, but it was regarded as a spell of crisis that hampers the steady development of the economy. In the next few years economists and non economists began to believe in the regularity of these crises and analyzed how they relate to the segregated and changing economic structure. In society, it is said that history is constantly repeated. This is a business cycle that repeats the cycle that has been going on fo r many years, from the economic downturn to recovery and expansion. It will never end, it will not stop repeating