why economy runs in cycles?

Question

So, the book say economy run in cycles and waves, there are uphills and downhills, but overall thing get better in the long term.

But why? what is the mechanism behinds it? and, does things always get better cycles after cycles? Is it possible that it’s just the uphill part of a bigger cycle?

In: 4

Answer 1

Understanding the economy is a running gag. Not one person can figure it out. The other guy kinda got though with the cycles of unsustainable growth. But there’s too many moving parts and money is just a number on a server now.

“How many economists does it take to change a light bulb? Seven, plus/minus ten”