Economic Definition of demand-driven business cycles. Defined.
Offline Version: PDF
Term demand-driven business cycles Definition: Business cycle instability caused by changes in one or more of the four aggregate demand expenditures on gross domestic product--consumption, investment, government purchases, and net exports. This is one of two basic types of business cycles; the other being supply-drive business cycle. Demand-driven business cycles tend to be the more common of the two types. In general, demand-driven business cycles are more responsible for short-term instability, while supply-driven business cycles tend to be more closely associated with long-run changes in the economy.
« demand space | demand-management policies »
Permalink: https://glossary.econguru.com/economic-term/demand-driven+business+cycles