Human life is highly dynamic. It keeps on changing with time. Similarly, economic activities go through phases of dynamic changes.

Economic activities experience changes of four types. They are discussed below:
1. Irregular changes:

Changes that occur accidentally in an economic activity are called irregular changes.

Example:

• Floods, famines, storms, fire, etc. Such accidents affect the economic activity in the short run and sometimes in the long run too.
• These changes may generally occur and/or have their impact only in few sectors or few regions of an economy. For example, flood may have impact only in the agricultural sector or only in the industrial sector.

2. Seasonal changes:

Changes that occur quite often with change in season are called seasonal changes.

Example:
Demand for certain goods changes with change in seasons. This then affect production and employment.

3. Long run regular changes:

Some changes occur in a specific direction in the form of a trend. These are directional changes which occur in an activity.

Example: Some regular sales trends.

4. Cyclical changes:

• Changes occurring in repeated manner i.e. in cycles are called cyclic changes.
• The fluctuations arising in an economy over its long run creates upward and downward swings in the growth of economic activities. These fluctuations i.e. rise and fall in economic activities are called cyclical changes of economic activities.