Economics Business Cycle – Flashcards
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what is a business cycle?
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Fluctuations in the overall rate of national economic activity with alternating periods of expansion and contraction; these vary in duration and degrees of severity; usually measured by real gross domestic product (GDP)
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Peak
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The height of an economic expansion, when real GDP stops rising
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Contraction
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A period of economic decline marked by falling real GDP
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Trough
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The lowest point in an economic contraction,when real GDP stops falling
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Recovery Period
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Period in which a business cycle following a recession,during which the real GDP rises
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Expansion
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A period of economic growth as measured by a rise in real GDP
