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It has significant effects on the livelihood of the citizens and businesses performance of a country. The hypothetical business cycle with varying duration and intensity has four phases of peak, recession, trough and recovery as shown below (Tucker 2005, p. 390).
Figure 1. Hypothetical business cycle
Source: http://swlearning.com/economics/tucker/eft4e/ppt_exhibit/business_cycles.ppt
Economic slowdown occurs during the Recession stage shown above with the real GDP declining and reaches its lowest at the Trough stage. At this stage of the business cycle unemployment rises, business profits drops, and production capacity is underutilized...
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