key term - Business cycles

Definition

Business cycles are the fluctuations in economic activity that an economy experiences over a period of time, marked by phases of expansion (growth) and contraction (decline). These cycles are natural parts of the economic environment, reflecting changes in consumer demand, employment rates, and production.

Related terms

Expansion: A phase of the business cycle where economic activity is growing, characterized by increased production, employment, and consumer spending.

Recession: A phase marking a contraction in the business cycle, identified by a significant decline in economic activity across the economy lasting more than a few months.

Gross Domestic Product (GDP):

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It's often used as an indicator of an economy's size and health