Trade Cycle

Hey friends! I shall share with you today a topic of economics called trade cycle.

What a trade cycle is?
A trade cycle is an interval of alternating periods of prosperity and depression. It's the dynamic phases of market; one with economic activities at its peak and another with the bear market.

There are 4 phases of trade cycle:

1. Boom: The period with economic activities at its peak.
2. Recession: The period where economy start falling gradually.
3. Depression: The period where economy is at its lowest position.
4. Recovery: The government and changes play a role to recover the economy. Economy starts rising at this stage.

Conclusion:
Every economy goes through these 4 phases and development and growth takes place.

Note: Now is the period of depression everywhere because of trade war between America and China.