“Critically review the causes of business cycles and evaluate the impact of business cycles on construction and professional firms. Advise on the policies which the government may choose to combat the impact of recession. (2.1 Economics and Finance for Construction)”

As for most businesses, the business cycle is a key consideration for construction and professional firms. For businesses they are one of the most difficult challenges  to be overcome in order to survive or to even succeed however for economists they have provided to be extremely stimulating intellectual exercises. A cycle is defined as a series of events that are repeated regularly.  However it can be said that the average duration and other defining features of the business cycle have apparently changed over the period of time hence it may be more accurate to use the term wave than cycle. Dudukovic (2007) argues the term cycle is rather misleading, whereas business fluctuations do not tend to repeat at the regular time periods.

They were founded in the 19th century; the first cycle was founded by Juglar in 1860 who founded a major cycle from 7 to 11 years. T…(short extract)