Business cycle
Definition
The business cycle refers to the fluctuations in economic activity that occur over time, including periods of expansion (economic growth) and contraction (recession).
Analogy
Think of the business cycle like a roller coaster ride. Just as a roller coaster has its ups and downs, the economy goes through periods of booms and busts.
Related terms
Expansion: A period of economic growth characterized by increased production, employment, and income.
Recession: A significant decline in economic activity lasting for at least six months, marked by reduced output, employment, and income.
Depression: An extreme recession with severe declines in economic activity lasting for several years.
"Business cycle" appears in:
Study guides (2)
Additional resources (1)
Practice Questions (2)
- Which of the following is true about the business cycle?
- Which phase of the business cycle is characterized by low unemployment and rising inflation?
Resources
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