Each of the previous models must operate within a business cycle with the exception of Marxism - there is no real market. Since government controls supply and demand, and therefore price, the economic cyle is a function of the goverments response to the global business cycle.

The role of the business cycle is to reward productivity and innovation to achieve growth until the quality of decisions decrease creating bubbles. When a bubble bursts the business cycle cleanses out the bad decisions to better utilize investments in productivity and innovation.

How long and serious is a function of government intervention in the cycle which impacts supply and/or demand and therefore distorts price. Business cycles left unhindered are swift and long lasting (expansions) and contractions short and painful.

Topics: 8 Stages of the Business Cycle Expansion Equilibrium Point Bubble Crest Contraction Eqilibrium Point Recession/Depression Trough