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JUGLAR CYCLE: A cycle of economic activity lasting between 8 and 10 years that acquired the name of the first economist to study it, Clement Juglar. The Juglar cycles is attributed to investment in equipment and machinery. This is one of four separate cycles of macroeconomic activity that have been documented or hypothesized. The other three are Kitchin cycle, Kuznets cycle, and Kondratieff cycle.

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RETURNS TO SCALE

Changes in production the occur when all resources are proportionately changed in the long run. Returns to scale come in three forms--increasing, decreasing, or constant based on whether the changes in production are proportionally more than, less than, or equal to the proportional changes in inputs. Returns to scale are the guiding principle for long-run production, playing a similar role that the law of diminishing marginal returns plays for short-run production.

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