Business Cycles

Flashcards covering key concepts of business cycles.

Business Cycle

Periodic but irregular upward and downward movement in economic activity, including production, employment, profits, prices, and wages.

Expansion Phase

Economic activity rises, including increases in production, employment, and income.

Peak Phase

Highest point of economic activity before a downturn, marked by maximum output and employment.

Contraction Phase

Economic activity declines, including reduced production, employment, and income; may lead to a recession.

Recession

A period of significant decline in economic activity lasting more than a few months.

Trough Phase

Lowest point of economic activity, marking the end of a recession and the beginning of recovery.

Recovery Phase

Economic activity begins to rise again, leading to increased production, employment, and consumer confidence.

Prosperity

High levels of output, employment, and income in the economy.