4 parts of business cycle – Flashcards
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Expansion/prosperity
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Flourishing economy, low unemployment, increase in output of goods and services, high consumer spending
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Peak
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End of expansion, beginning of recession
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Recession
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Period of economic slowdown, less spending, R and D is cut back, business expansion is put on hold
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Depression
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Period of prolong recession, nearly impossible to find job, businesses shut down
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Recovery
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Economy grows again, jobs are created, consumers begin to spend
