Consider the business cycle and its four phases

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Can the bad actually be good? Consider the business cycle and its four phases. Often times we anguish over the recessionary part of the cycle – there is increasing unemployment, bankruptcies, incomes and profits are dropping, production declining, etc. There is a lot of pain in the short run. But just as the forest fire destroys the forest, the recession can actually be a good thing. In what sense can a recession be good for us, especially in the long run? Try to identify at least two things that are good for us due to the recession. Discuss them.

Reference no: EM131253079

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