BUSINESS CYCLES PRESENTATION by ML MMOLA

The presentation is about the phases of business cycles, the causes of business cycles, and the types of business cycles. This can be used by grade 10 and 12 learners to study the topic. There are links on the reference list that will direct them to YouTube where they will find more good content along with activities.

1. BUSINESS
CYCLES

2. OBJECTIVES:
WHAT IS BUSINESS CYCLES
FOUR PHASES OF BUSINESS
CYCLES
CAUSES OF THE BUSINESS
CYCLES
TYPES OF BUSINESS CYCLES
MEASURES TO SMOOTH
FLUCTUATIONS IN THE ECONOMY

3. WHAT ISBUSINESS
CYCLES?

4. ENGAGE YOUR MIND AND GIVE IT
SOME THOUGHT!

5. What is business cycles?
BUSINESS CYCLES
OCCUR WHEN
ECONOMIC ACTIVITY
SPEEDS UP OR SLOWS
DOWN (FLUCTUATIONS).
INFORM VARIOUS
ECONOMIC
PARTICIPANTS OF THE
STATE OF THE ECONOMY
BUSINESS CYCLE IS A
TOTAL NATIONAL
OUTPUT, INCOME, AND
UNEMPLOYMENT
SWING.
USUALLY LAST FOR 2 TO
10 YEARS

6. Phases of
business
cycles:

7. 1.Prosperity phase:
The end of expansion
and beginning of
contraction
During this phase, the
economy experiences
employment,
production, and
consumption growth.
Unemployment rate
falls
High level of output
Business continues to
expand resulting in
further investment
Aggregate demand is
higher than aggregate
supply.

8. 2. Contraction phase:
•Also known as recession
•Downturn in the business cycle
•Period of decline in economic activities
•Employment level significantly declines so does
output
•Real GDP for 2 consecutive years, there is negative
economic growth
•Business and consumer confidence weakens
•Consumer spending decrease

9. 3. Depression phase
•There is high
unemployment rate
•Inflation comes under
the falling curve.
•Low spending.
•Economic activities
decline further
causing businesses
to shut down.

10. 4. Recovery phase:
There is a general increase in economic
activities.
Low unemployment rate & increase in
salaries and wages.
High demand for goods and increased
consumer spending.
Investment by firms increases leading to
an increase in production.

11. Causes of business cycles
WHAT ARE THE
POSSIBLE CAUSES OF
FLUCTUATIONS IN THE
ECONOMIC ACTIVITIES
IN SOUTH AFRICA?
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12. As you have mentioned some here is more

13. Conti…
EXOGENOUS (MONETARIST) ENDOGENOUS (KEYNESIAN )
FACTORS THAT AFFECT A
SYSTEM FROM OUTSIDE
FACTORS THAT AFFECT THE
ECONOMY FROM INSIDE
NATURAL DISASTERS CHANGES IN THE LEVEL OF
CONSUMER SPENDING
TECHNOLOGICAL CHANGES CHANGES IN THE LEVEL OF
INVESTMENT

14. 3. Kichin cycles:
❑There are short fluctuations in economic
activities over 2 to 5 years.
❑Caused by changes in business
inventories.
❑Also referred to as inventory cycle
4. Juglar cycle:
❖Fluctuations in economic activities last
over 7-to 11-year period.
❖Caused by changes in the investment of
capital goods.
2. Kondrateiff cycle:
➢Long-term fluctuations from 40 to
60 years
➢Results from changes in
technological innovation
Types of
business
cycles
1. Kuznets cycle:
▪ Medium-term fluctuations lasting for 15 to
20 years.
▪Caused by changes in infrastructural
investment.

15. Measures to smooth the business cycles.

16. Contin…

17. MONETARY POLICY:
MORAL SUASION
INTEREST RATES (REPO
RATES)
CASH RESERVE
REQUIREMENTS
OPEN MARKET
TRANSACTIONS
EXCHANGE RATE POLICY

18. FISCAL POLICY:
STIMULATE
GOVERNMENT
SPENDING
TAXES
DAMPEN
INCREASE/DECREASE
SPENDING & TAXES

19. ANY QUESTIONS ??

20. Take-Home Questions:
1. How has COVID-19 affected the economy
of South Africa? Integrate phases of a business
cycle
2. What measure has the SA government
implemented to stabilize the economy?

21. THANK YOU !!!

22. REFERENCE LIST:
1.Surabhi, P. & Prateek, J. (2012). Presentation on Business Cycle [PowerPoint
slides]. Slideshare.https://www.slideshare.net/slideshow/business-cycle-
13188002/13188002?from_search=1#3
2.Nithin, K. S. (2023). Business Cycle [PowerPoint slides]. Slideshare.
https://www.slideshare.net/slideshow/business-cycle-pptx-
6674/262789594?from_search=5
3.Aligarh, A. (2023). Business Cycle. Slideshare.
https://www.slideshare.net/slideshow/business-cycle-
notespdf/260030646?from_search=17
4.Raj, N. (2023, April 22). 5 Phases of Business Cycle. [Post]. LinkedIn.
https://www.linkedin.com/pulse/5-phases-business-cycle-nivethan-raj-/
5.Madzokere, C. (2020, June 1).Lesson 11 Composition of Business Cycles
TDBS Economics Grade 12 by Carden Madzokere#businesscycle[Video].
YouTube.https://www.youtube.com/watch?v=jQgd2IAVyTw

23. 6. Madzokere, C. (2020, June, 3). Lesson 12 Causes of Business Cycles TDBS
Economics Grade 12 by Carden Madzokere#businesscycle[Video]. YouTube.
https://www.youtube.com/watch?v=D2Dk_qgqzTM
7. Chappatte. (2013). UncertainEconomic Recovery [Online image]. Chappatte
Globecartoon. https://chappatte.com/en/images/uncertain-economic-recovery
8.Chast, R. (2011). Closed forBusiness [Cartoon]. The New Yoker.
https://www.newyorker.com/cartoons/cartoon-lounge/closed-for-business
9.Rodrigo. (2012). Stealing Inflation [Cartoon]. Toonpool.
https://www.toonpool.com/cartoons/Stealing%20inflation_164113
10.Allie, E. (2015). Unemployment Rate [Cartoon]. Editorial Cartoon U.S.
https://theweek.com/cartoons/558982/editorial-cartoon-unemployment-rate
11. (2020,May10).PhasesofBusinessCycle:BusinessEconomics2021.
ImaduddinEducare.https://imaduddineducare.com/course/phases-of-business-
cycle/#google_vignette
12. News Canva. (2023). Business Cycle and Markets [Image]. FinSchool.
https://www.5paisa.com/finschool/business-cycle-and-markets/

24. 13. Pettinger, T. (2020). Difference Between Monetary and Fiscal Policy [Online
Image]. Pineterest. https://za.pinterest.com/pin/1003810204438124902/
14. Magakoe, P. (2023). Government ‘leading SA to economic suicide’ by siding
with Russia [Online Image]. TheCitizen. https://www.citizen.co.za/news/govt-
leading-south-africa-to-economic-suicide/