Chapter 47: The business cycle

Key indicators

A specific measurement used to evaluate the performance and success of a marketing campaign, strategy,...

Jobs market

The number of jobs that are available in a particular place or for a particular type of work

In employment

To work somewhere

Out of work

Without a paid job

Unemployed

Not having a job

Disposable incomes

Money that someone has left to spend after paying taxes

Retail sales

Sales of goods to the public rather than to businesses, stores, etc., often considered in relation to economic activity as a whole

Consumer spending

How much people spend in the shops

Consumer borrowing

The amount of money that individual people, not companies, have borrowed to buy things, especially by using credit cards

Property

Something that’s owned by someone

Housing market

The type, cost, and number of houses and apartments available in a particular area

House prices

How much houses cost

Mortgages

An agreement that allows you to borrow money from a bank or similar organization, especially in order to buy a house, or the amount of money itself

Interest rates

The interest percent that a bank or other financial company charges you when you borrow money, or the interest percent it pays you when you keep money in an account

Central bank

A bank that provides services to a national government, puts the official financial plans of that government into operation, and controls the amount of money in the economy

Inflation

A general, continuous increase in prices

Financial markets

The activity of buying and selling shares, etc., or a place where this is done

Stock market

The activity of buying and selling shares in particular companies, and the people and organizations involved in this

Trade balance

The difference between the money that a country receives from exports and the money it spends on imports

Trade surplus

A situation in which the value of goods a country exports (= sells to other countries) is greater than the value of goods it imports (= buys from other countries), or the size of this difference

Trade gap

A situation in which the value of goods a country imports (= buys from other countries) is greater than the value of goods it exports (= sells to other countries), or the size of this difference

Exchange rate

The rate at which the currency of one country can be changed for the currency of another country

Government spending

The total amount of money that the government spends in a particular period

Budget surplus

The amount of extra money available to a government because it has spent less money than it earned

Budget deficit

The amount of extra money that a government needs because it has spent more money than it earned

Economic growth

An increase in the economy of a country or an area, especially of the value of goods and services the country or area produces

To recover

To improve after a difficult period or after falling in value

Trough

A situation in which something has reached its lowest level, price, etc. before going up again

Recovery

A process in which a situation improves after a difficult period, or in which prices increase after falling in value

To pick up

To improve

Prosperity

A situation in which people are successful and have a lot of money

Expansion

An increase in the size, number, or importance of something

To peak

To reach the highest, strongest or best point

Peak

The highest strongest or best point

To decline

To become less, worse or lower in value

To shrink

To become smaller

Contraction

A situation in which less money is being earned, spent, or invested in a market or economy

To contract

If a market or economy contracts, less money is being earned, spent, or invested in it

Slowdown

A period when there is less business activity than usual in a company, the economy, etc.

To bottom out

To reach the lowest point in a continuously changing level that is about to start rising or increasing again

Economic/Business cycle

A period during which a country's economy goes from growth to recession (= a time when business conditions are bad) and back to growth

To boom

A period during which a country's economy goes from growth to recession (= a time when business conditions are bad) and back to growth

Risk

The possibility that something bad or dangerous will happen

Overheating

Too much very fast growth in an economy, with the result that prices increase too quickly

Economic stability

The financial system of a nation that displays only minor fluctuations in output growth and exhibits a consistently low inflation rate

Soft landing

A period when economic growth slows down, but the economy does not enter recession

Sustainable levels

Amounts or rates that can be maintained over time without causing long-term harm to the environment, resources, or future generations

Recession

A period, usually at least six months, of low economic activity, when investments lose value, businesses fail, and unemployment rises

Severe

Causing very great pain, difficulty, worry, damage, etc.; very serious

Depression

A recession (= time of low economic activity, when investments lose value, businesses fail and people lose their jobs) that lasts for a long period of time, usually several years

Slump

A recession (= time of low economic activity, when investments lose value, businesses fail and people lose their jobs) that lasts for a long period of time, usually several years

Boom and bust cycle

A situation in which an economy or business regularly goes through periods of increased activity and success followed by periods of failure