"*The business cycle" is the cyclical change in the economy that is the activity level of the entire economy. It's called "Economic *fluctuations" or "waves of the economy". The theory seems that the economic *circulates permanently and regularly with a fixed cycle due to a certain cause is called "the business cycle" theory.
This is the reason why the business cycle occurs.
①Prices will rise when goods and services are sold too much in the booming economy
②As demand increases more than supply, prices will rise and become *inflationary
③If inflation goes too much, goods and services will be gradually stopped selling, it cause to the corporate profits' decline, reduction of corporate production, reduction of household income, reduction of the employment rate and reduction of demand
④On the other hand, when goods and services are not sold under the repetition of recession, prices of goods and services will fall down
⑤When the supply becomes larger that the demand, the *deflation of the price falls into a situation of deflation
⑥If the price becomes inexpensive and you can buy a lot of goods and services, it cause to increase demand, increase production of companies, increase profits of companies, increase employment rate and increase household incomes
*the business cycle 景気循環
*fluctuation 変動、不安定
*circulate 循環する
*inflationary インフレを誘発する
*deflation デフレ
今日は経済についてのお話しです。景気循環（景気変動）はなぜ起こるのか？少し難しいテーマですが。
国内経済のみに目を向けてみると、「景気変動」というのは景気全体の活動水準における変動であり、「経済の変動」または「景気の波」とも呼ばれています。この理論によると、ある経済的要因が一定の理由で定期的に循環していることを「景気変動」理論と呼びます。
景気変動が起こる理由
①好景気の中で商品やサービスが売れ過ぎると、価格が高騰する
②需要が供給を上回れば、価格はさらに上昇しインフレを引き起こす
③インフレが進み過ぎると、商品やサービスが徐々に売り止めされ、企業収益の減少、企業生産の減少、家計所得の減少、雇用率の低下、ひいては需要の減少を引き起こす
④一方で、景気後退の繰り返しで商品やサービスが売れなくなると、その価値は下がる
⑤供給が需要を上回ると、価格はさらに下落しデフレの状態になる
⑥価格が安くなり、商品やサービスが購入しやすくなれば、需要の増加、企業の生産の増加、企業利益の増加、雇用率の上昇、家計所得の増加につながる
Harumi Miyahara