How many years does it take for a business cycle to complete? Does it take a very long time? If it's less than ten years, won't consumers spend less money with each new boom cycle?
For example, let's say that the US economy was in a recession a few years ago. Now, the economy is picking up again and I have more money to spend. I don't think I would spend as much as I used to because I will still remember the financial problems I had during the last recession. I'll try to save some of my money for a similar emergency.
If this were to occur, won't it cause the economy to grow at a lower rate during each new economic boom?