(M.L.Jhingan )1997 Business cycles or trade cycles is a part of the capitalist system. It refers to the phenomenon of cyclical booms and depressions. In a business cycle , there are wave like fluctuations in aggregate employment, income , output and price level.
The term business cycle has been defined in various ways by different economicsts. Prof Haberler’s definition is very simple: ” The business cycle in the general sense may be defined as an alternation of periods of prosperity and depression of good and bad trade . Keynes’ definition in his Treatise of Money is more explicit: ”
A trade cycle is composed of periods of good trade characterized by rising prices and low unemployment percentage, altering with periods of bad trade characterized by failing prices and high unemployment” Gordon’s definition is precise:
Business cycles consist of recurring alternation of expansion and contraction in aggregate economic activity, the alternating movements in each direction being self reinforcing and pervading virtually, all parts of the economy”
Nigeria has gone through two recessions on the last five years.
The last being the recession associated with the lock down of the economy due to the COVID pandemic.