Understanding Business Cycles
Free CFA Level I lesson in Economics. 14 min read, ~2,119 words.
Four phases: recovery, expansion, slowdown, contraction. Peak and trough are turning points (single dates), not phases. Credit cycles last 15 to 20 years and amplify business cycles (5 to 10 years) through leverage and asset prices. Inventory-to-sales ratio FALLS in early recovery (sales outpace stock) and RISES near a peak...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- business cycles
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