Understanding Business Cycles
Free CFA Level I lesson in Economics. 14 min read, ~2,033 words.
Four phases: recovery, expansion, slowdown, contraction. Peak and trough are turning points, not phases. Credit cycles often amplify business cycles. Easy credit fuels booms; tight credit deepens busts. Inventory-to-sales ratio FALLS in early recovery (sales outpace stock) and RISES near a peak (sales fade). Housing leads: building permits and starts...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- business cycles
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