The main tools for careful measurement of the instability caused by the business cycle were developed by the great American economist Wesley Mitchell (1874-1948). This chapter follows his approach.


After reading this chapter, you should be able to:

• Explain how to find the peaks and troughs of the business cycle. • Explain how to measure the path of any economic series over the cycle. • Describe how much an economic series rises from trough to peak and falls from peak to