Economic fluctuations are simply fluctuations in the level of the national income of a country representing growth or contraction. A market economy is not static. It's dynamic. A rise in national income means an economy is growing, while a decline in national income means that an economy is contracting. The current economic model describing economic fluctuations in a market economy is the business cycle. When the businesses are run in a capitalistic economy it is likely to have ups and downs. These fluctuations that take the shape of a wave are known as the business cycle or trade cycle or economic fluctuations
Over the last decade, research in the Economic Fluctuations and Growth (EFG) Program has responded to important macroeconomic challenges. This report emphasizes four areas in which there have been significant developments. First, the global financial crisis has prompted research on the sources and propagation of financial crises, as well as on policy responses. Second, the general decline in business dynamism and lackluster productivity has reignited interest in economic growth analysis.
Business Cycle
The business cycle is a pattern of economic fluctuations describing the periods of economic growth, contraction, and the transitions in between. If you plot these periods on a graph, you'll see peaks and troughs, ups and downs.

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