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Trade cycles are alternating areas and periods of the expansion or declination of the economic activities. Different phases of the trade cycles such as prosperity, which implies the economy is doing well as a whole financially, and the people have no hardship after daily expenses. Another phase of trade cycling is recession, which is when the economy has declined over some period of time, and goes on for a short time. The fourth phase of a trade cycle is known as depression, which is when the economy is doing bad financially, most people cannot meet their daily expenses financially and for a longer period of time than a recession. Recovery is another phase, which is after a recession or depression and the economy starts to bloom again

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