Difference between business cycles and business fluctuations:
Business cycle:
Business cycle is the downward or upward movement of the GDP (gross domestic product) around the long term of the economic trend and it has four distinct phases as follows,
It is also called as trade cycle or economic cycle.
Business fluctuation:
In economic activity, the increase or decrease is measured corresponding to increase or decrease respectively in real GDP.
Note: Recently, economic theory have moved towards economic fluctuations rather than a "business cycle". Although few economists use the term 'business cycle' as a convenient shorthand.
Example: Milton Friedman says that calling business cycle a "cycle" is a misnomer, because of the non-cyclical nature.
