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💹Economic Cycles and Their Impact on the Economy

📉Economic cycles are periods of growth and contraction that influence all sectors of the economy. These cycles include phases of expansion, peak, contraction, and trough, which together outline general trends in economic activity.

📌Key Points: 
— During expansion, companies grow, investments increase, and employment rises. 
— In the contraction phase, businesses and markets face declining demand and reduced production. 
— Recessions can lead to high unemployment levels and decreased purchasing power.

🔍Understanding economic cycles helps in predicting economic changes and strategically planning finances.

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