Business Cycles

Unit 1: Business Cycles

Business Cycle

  • fluctuations in economic activity that an economy experiences over a period of time

Expansion

  • a period of economic upturn when output & input/employment are rising

Peak

  • highest point
  • where business activity has reached a temporary maximum
  • near or at full employment

Contraction

  • aka recession
  • period of decline in total output, income, & employment

Trough

  • lowest point
  • economy turns from recession to depression

Comments

  1. Liesely S.February 5, 2018 at 3:55 PM

    You should include that expansion is the default mode of the economy, with recession being much shorter and less common.

    ReplyDelete

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