Business Cycles Explained in 5 Minutes | Macroeconomics

The business cycle explains how economies move through expansion, peak, contraction, and trough instead of growing in a straight line. You’ll learn how the cycle is measured, what each phase means, how recessions are officially judged, and why economic indicators are grouped as leading, coincident, or lagging. I walk through the 128-month U.S. expansion, the two-month 2020 recession, and post-1945 cycle duration averages with actual numbers. I also cover the two-quarter recession rule, the NBER definition, depth breadth and duration, common cycle turn drivers, and why indicators shift probabilities rather than create certainty. Whether you’re an investor trying to interpret market headlines or a student learning macroeconomics, this video gives you everything you need to understand the business cycle.

Chapters
0:00 – Longest Expansion vs Shortest Recession
0:21 – What Is the Business Cycle?
0:51 – The Four Phases of the Business Cycle
2:07 – The Two-Quarter Recession Rule
2:26 – How the NBER Defines a Recession
2:56 – How Long Business Cycles Last
3:23 – What Turns the Business Cycle?
3:45 – Leading, Coincident, and Lagging Indicators
4:43 – Key Takeaways

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*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.