The length of a business cycle is the period of time containing a single economic environment of business notes pdf and contraction in sequence. Business cycles are usually measured by considering the growth rate of real gross domestic product.
Despite the often-applied term cycles, these fluctuations in economic activity do not exhibit uniform or predictable periodicity. The common or popular usage boom-and-bust cycle refers to fluctuations in which the expansion is rapid and the contraction severe. The first systematic exposition of periodic economic crises, in opposition to the existing theory of economic equilibrium, was the 1819 Nouveaux Principes d’économie politique by Jean Charles Léonard de Sismondi.