Chartered Market Technician (CMT) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

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According to the Princeton Economic Institute, what is the length of the global business cycle?

5.2 years

8.6 years

The length of the global business cycle, as indicated by the Princeton Economic Institute, is 8.6 years. This figure is derived from historical analysis of economic expansions and contractions across various countries and industries.

Understanding that the business cycle encompasses periods of growth (expansion) and periods of decline (recession) is crucial. The 8.6-year average reflects the time it typically takes for economies to progress through these stages, taking into account factors such as investment trends, consumer behavior, and external shocks.

This insight highlights that business cycles are not rigidly fixed and can vary based on a range of economic conditions, but the 8.6-year metric serves as a useful benchmark for analysts and traders when considering potential market movements and economic planning.

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10 years

12.4 years

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