Abstract: The paper studies the relationship between cycles and growth by means of a macro approach and within a medium- run horizon, characterized by the presence of multiple equilibria and the interaction between income distribution and institutional and financial aspects. In this context, the actual rates of growth can diverge from the steady state values, which are the focus of most growth theories. The fact that the average growth (or feasible rate of growth) can be different from steady state values highlights the relevance of the interplay between business cycles and growth and therefore, indirectly, the role of aggregate demand beyond the very short-run.