a forecast that addresses the business cycle by predicting planning indicators is,

The business cycle is an important factor in understanding how the economy works. It refers to a series of stages that the economy goes through: recession, recovery, expansion and peak. The forecast we are going to be looking at today will address each stage in turn, providing a detailed explanation for what they all mean and how they impact businesses – as well as their planning indicators. In a recession, the GDP falls and unemployment rises. This is due to companies taking fewer risks in order to conserve their cash flow and avoid spending unwisely. The forecasts we are going to be looking at today will help you plan your business strategy if this stage of the cycle should happen again. Expansion means that growth has returned; it also means that there is an environment for businesses who can invest capital to do so once more as well. Peak marks the end of expansion where inflation begins to grow along with interest rates as economic productivity wanes without new investments being made into production capacity or other ventures by firms or households which would allow them to show ‘economic initiative’. Continue Writing: