By using the vector error correct model with Markov regime switching to test the equilibrium relationship in the long run and the fluctuation pattern in short run in the real output and inflation, we find that there are the threshold effects among the substitutions and impacts between growth and inflation in China＇ s business cycle, which is asymmetry to some degrees. The empirical evidences also show that the fluctuations have become stable, the duration has been more longer, and the price stickiness has been decreased. These findings are very important to detennine the combinations of economic policies and implementing of macroeconomic controls