Economic cycles

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“The economic cycles”
According to some authors the economic cycles are those changes in economic activities, which range from expansions in the economy, which can also be called boom, identified tobe periods when the economy is broken by several phenomena that can lead to recession, this can be illustrated with a series of statements that were made in the model of Kydland and Prescott, whotold us that before a favorable impact on the technology, the production will increase, the demand will expand, and real wages will rise, because it increases the productivity of factors, labor andcapital until they incur an excessive accumulation of capital during the boom, leading the economy into the next stage or cycle that is celled the recession, that is the stage where there is a noticeabledrop on investment, employment, production and this stage may be more commonly known as crisis and if this is greater than the previous one is being carried out phenomenon called contraction of theeconomy, which is but a step backwards.
There is another stage that we call depression, in which there is usually a very low level of purchasing, which means that prices are lower than usual, theproduction that there is almost zero and the level of unemployment is by below standards and there are these steps do not provide welfare to society and businesses, is the recovery phase is the phase thatbegins to overcome the crisis and revive the economy, we can say that this phase is the beginning of a new economic cycle or when the cycle starts.
In real life, it is possible to identify thesecycles, when the simple act of observing the news, we can notice that there are periods in which firms offer jobs to people, getting the results that had been proposed, as well as there are periods wherethey have to close their facilities, they have lost, downsizing or declare bankruptcy.
There are also several proposed by several economic parameters, which provide in that moment can be assumed...
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