Business cycle dating committee wiki
A business cycle is seen as an inevitable part of the capitalist system. A business cycle is generally divided into four stages: expansion, prosperity, contraction, and recession.The stage in which an economy operates has a significant impact on a firm's profitability and prospects.When the recession reaches its bottom the business cycle starts again.
business cycle that is widely used in the analysis of business conditions.
See Methodology Does CEPR use a different approach to NBER?
See The CEPR and NBER Approaches What data does the Committee use?
This impact is especially severe with respect to firms that experience large swings in sales and profits.
Many analysts believe stock prices tend to lead the business cycle.