Business Cycle Study Notes

These flashcards cover key terms, definitions, and concepts related to the Business Cycle.

What is a Business Cycle?

It shows how economic activity rises and falls over time.

What are the main movements in the Business Cycle?

Expansion (Upswing) and Contraction (Downswing).

Define Upswing.

It refers to an increase in economic activity.

Define Downswing.

It refers to a decrease in economic activity.

What is a Peak in the context of the Business Cycle?

The highest point of economic activity.

What is a Trough in the context of the Business Cycle?

The lowest point of economic activity.

How is the Length of a Business Cycle measured?

It is measured from Peak to Peak or Trough to Trough.

Describe the period from Peak to Trough.

It is known as the Downswing.

Describe the period from Trough to Peak.

It is referred to as the Upswing.

What occurs during a Boom?

It occurs at the peak of the business cycle.

What occurs during a Slump?

It occurs at the trough of the business cycle.

List the phases of the Business Cycle in order.

1. Recovery 2. Prosperity (Boom) 3. Recession 4. Depression.

What is the memory trick for the phases of the Business Cycle?

RPRD (Recovery, Prosperity, Recession, Depression).