Consumer price index (cpi)

Economic fluctuations describe the economy’s ups and downs. When the economy grows, businesses can grow as well and make higher profits. By contrast, when the economy slows down, firms make less money, and profits decline. These fluctuations are often referred to as business cycles

• Economic fluctuations describe the economy’s ups and downs. When the economy grows, businesses can grow as well and make higher profits. By contrast, when the economy slows down, firms make less money, and profits decline. These fluctuations are often referred to as business cycles

What causes economic fluctuations

• - Technological changes, innovative products, using in cutting edge technologies in industries
• - Monetary policy. If there be a decrease in money supply production will fall and unemployment will increase.
• - Aggregate demand and Aggregate Supply

Short run and long run

• In economics, short run refers to a period during which at least one of the factors of production (in most cases capital) is fixed. The long run, on the other hand, refers to a period in which all factors of production are variable.