The Operation of an Economy - 3. Business Cycle

Business Cycle

The fluctuation in the level of economic growth due to domestic and/or international factors.

Economic Growth

The increase in the monetary amount of goods and services produced in an economy over a given time, often measured as a rise in GDP.

Recession

Two consecutive quarters (or 6 months) of negative economic growth; also known as a contractionary stage or downturn.

Expansionary Stage

The phase of the business cycle characterized by economic growth and rising GDP.

Contractionary Stage

The phase of the business cycle marked by a decrease in economic growth, identified as a recession.

Government Intervention

Actions taken by the government to influence the economy, especially during periods of recession or slow economic growth.

Stimulus

Economic measures, such as financial aid or incentives, implemented by the government to boost economic activity.

Job Keepers

A government program designed to support businesses and keep employees during economic downturns, particularly noted during the COVID-19 pandemic.

Australia's Economic Streak

Australia experienced 29 consecutive years of economic growth without a recession until the intervention of COVID-19.