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Konduz Travel on Note that a declining real GDP is only part of this definition. This means that our definition of a business cycle is a simplification, albeit one highlighting the most important aspect of the issue. The effects of business cycles. The most well known business cycle in U.S. history began in August 1929 and ended in May 1937. With a couple of years added (extending the end to 1939), this period of economic difficulties is known as the Great Depression. Konduz Travel 2016.