The cyclical theory refers to a model used by historians Arthur M. Schlesinger Sr. and Arthur M. Schlesinger Jr. to explain the fluctuations in politics throughout American history. In this theory, the United States’s national mood alternates between liberalism and conservatism.

What is the meaning of cyclical theory?

The cyclical theory refers to a model used by historians Arthur M. Schlesinger Sr. and Arthur M. Schlesinger Jr. to explain the fluctuations in politics throughout American history. In this theory, the United States’s national mood alternates between liberalism and conservatism.

What is meant by business cycle theory?

A business cycle involves periods of economic expansion, recession, trough and recovery. The duration of such stages may vary from case to case. The real business cycle theory makes the fundamental assumption that an economy witnesses all these phases of business cycle due to technology shocks.