Business Cycle Theory👇 Business Cycle Theory explains the recurring rise and fall in economic activity. Think of the economy like a heartbeat .... acceleration, climax, slowdown, bottom, and repeat. #Business Cycle Theory was first identified by Sismondi, formally explained by Clement Juglar (known as the father of business cycles), and later expanded by Schumpeter, who linked cycles to innovation waves. 1. Expansion (Upturn) Economy grows: jobs rise, incomes increase, spending and production e