Are cyclical fluctuations necessary for economic growth?

Answer 1

The business cycle or economic cycle refers to the ups and downs

seen somewhat simultaneously in most parts of an economy. The cycle

involves shifts over time between periods of relatively rapid growth of output

(recovery and prosperity), alternating with periods of relative stagnation or

decline (contraction or recession). These fluctuations are often measured

using the real gross domestic product. To call those alternances "cycles" is

rather misleading, as they don't tend to repeat at fairly regular time

intervals. Most observers find that their lengths (from peak to peak, or from

trough to trough) vary, so that cycles are not mechanical in their regularity.