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The last chapter presents case solution findings and conclusion ofthe study. CHAPTER 2LITERATURE REVIEW BUSINESS CYCLE and RECESSION2. 1 BUSINESS CYCLEThe term business cycle or economic cycle refers case study economy wide fluctuations inproduction or economic activity over several months or years, around a long term growthtrend. It typically involves shifts over time between periods of relatively rapid economicgrowth expansion or boom, and periods of relative stagnation or decline contraction orrecession. These fluctuations are often measured using case solution growth rate of real gross domesticproduct. Despite being termed cycles, these fluctuations in economic growth do not followa mechanical or predictable periodic pattern. In 1860, French economist Clement Juglar identified case solution presence of economic cycles 8 to11 years long, although he was cautious not case study claim any rigid regularity20th century, Joseph Schumpeter and others proposed a typology of business cyclesaccording case study its periodicity, so that a number of particular cycles were named after theirdiscoverers or proposers : case solution Kitchin inventory cycle of 35 years after Joseph Kitchin; case solution Juglar fixed investment cycle of 711 years after Clement Juglar; case solution Kuznets infrastructural investment cycle of 1525 years after Simon Kuznets; case solution Kondratieff wave or long technological cycle of 4560 years after NikolaiKondratieff. According case study Schumpeter, a Juglar cycle often identified as 'the' business cycle has fourstages:i Expansion increase in production and prices, low interests rates;6ii Crisis stock exchanges crash and multiple bankruptcies of firms occur;iii Recession drops in prices and in output, high interests rates;IV Recovery stocks recover because of case solution fall in prices and incomes. In this model, recovery and prosperity are associated with increases in productivity,consumer confidence, aggregate demand, and prices. In case solution cycles before World War II orthat of case solution late 1990s in case solution United States, case solution growth periods usually ended with thefailure of speculative investments built on a bubble of confidence that bursts or deflates,with case solution periods of contraction and stagnation reflecting a purging of unsuccessfulenterprises as resources were transferred by market forces from less productive uses tomore productive uses. Cycles between 1945 and case solution 1990s in case solution United States were generally more restrainedand seem case study follow political factors, such as fiscal policy and monetary policy.
Bargaining Power of Buyers
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Bargaining Power of Suppliers
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Threats of New Entrants
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Threats of Substitutes
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Degree of Rivalry
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Political Factors
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