Many
economists consider the irregularity of cyclical fluctuations. Cyclical fluctuations are not very
predictable. Hence, there is an
increased chance of forecast error on the economic prospects of the business
enterprise. This is the main reason why
these types of fluctuations in time series variation are extremely important to
identify.
Business
cycles have been described in many ways. In short, we can think
of business cycles as successive periods of expansion and contraction. Although each tends to follow the other in a
regular recurrent fashion, business cycles are not periodic as in the case of
seasonal variation. Successful
management of the business enterprise requires correct measurement of cyclical
patterns that prevail in individual time series.