Business Cycle Chapter in Single Video | CA Foundation Economics Chapter No 5 | Chandan Poddar

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In This Video We Will Discuss the Business Cycle all Concepts, Problems and Examples for CA Foundation Economics and CA Foundation Economics Chapter no 5 have been discussed by Chandan Poddar Sir For CA Foundation Grooming Education. ⚫ CA Foundation 9.0:- ⚫ CA Foundation Individual Courses:- ⚫ Self-Study Set: CA Foundation (For YouTube and Self-Study Students):- ⚫ Perfect Revision: CA Foundation Revision book:- ⚫ CA Foundation Perfect Practice Books:- ⚫ Free All India Challenge Test Series:- ⚫ CA Foundation Past Years Question Paper With Suggested Answers:- ⚫ Download Our Escholars AI App:- Watch Next:- ⚫ CA Foundation Accounts May 2021 RTP:- ⚫ Ledger & Trial Balance Complete Chapter:- Topic covered:- 00:00 Intro 00:29 Meaning of Business Cycle 04:25 Phase of Business Cycle 04:50 Expansion 10:39 Peak 13:20 Contraction 19:26 Depression 22:33 Recovery 25:30 What is Indicators 31:04 Features of Business Cycle All countries have gone through fluctuations in economic activities i.e. ups and downs in their economic activities. In other words, every country passes through a pattern where there is a period of economic growth, followed by periods of slowing growth and even failing growth. There are periods of prosperity followed by downturns. Thus, Although these economic fluctuations are recurrent and occur periodically, they are not at regular interval and are not of the same length. A business cycle passes through the following four distinct phases: Expansion/Boom/ Recovery/ Upswing Peak/Boom/Prosperity Contraction/Recession/ Downswing Trough/Depression Expansion In the expansion phase, there is increase in OUTPUT and EMPLOYMENT. Expansion phase is characterized by- increase in national output, increase in employment, increase in aggregate demand, increase in capital i.e. investments, increase in consumer spending, increase in sales, profits, stock prices, & expansion of bank credit. increase in standard of living. Peak Peak phase of the cycle is the highest point. The economy is producing at its maximum level. The economy becomes overheated i.e. unsustainable. The expansion phase ends here. The prices of inputs increase, resulting higher cost of production, leading to higher output prices. Higher output price leads to increased cost of living. Fixed income earners and consumers suffer. Economic growth stabilizes at peak an then starts the downswing. Contraction In the contraction phase. There is a fall in OUTPUT and EMPLOYMENT levels. Contraction phase is characterized by— fall in the level of investments, fall in the level of production and employment, fall in the incomes of people, demand and consumption of both capital goods and consumer goods fall, bank credit, shrinks as investments fall, stock prices fall, firms become pessimistic about future, there is lot of excess production capacity in industries. Trough and Depression The lowest level of economic activity is called trough or depression. All economic activity touch the bottom and the phase of trough is reached. Trough is the turning point into expansion. Increased investments lead to increase in consumption. Therefore, industries expand production and start using their idle production capacity and rate of unemployment falls. With this the cycle is complete. CA foundation: Grooming education academy is engaged in providing qualitative commerce education to society at concessional prices. We believe in Research, reasoning and result and thus our learners admit our USP of: "Pioneer in developing concepts". We provide the complete tutorials for CA foundation. To know about the courses and books that best suits your requirement call at our helpline number: 𝟖𝟖𝟖 𝟖𝟖𝟖 𝟎𝟒𝟎𝟐 𝐕𝐢𝐬𝐢𝐭 𝐎𝐮𝐫 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 to know more about the courses available: 𝐉𝐨𝐢𝐧 𝐨𝐮𝐫 𝐭𝐞𝐥𝐞𝐠𝐫𝐚𝐦 𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐟𝐨𝐫 𝐝𝐚𝐢𝐥𝐲 𝐮𝐩𝐝𝐚𝐭𝐞𝐬:::: 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐏𝐚𝐠𝐞: 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦 𝐏𝐚𝐠𝐞: 𝐓𝐰𝐢𝐭𝐭𝐞𝐫 𝐏𝐚𝐠𝐞:: 𝐋𝐢𝐧𝐤𝐞𝐝𝐈𝐧 𝐏𝐚𝐠𝐞: 𝐏𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐏𝐚𝐠𝐞: #CAFoundation #Economics #BusinessCycle #ChandanPoddar #ICAI