2.7: Business Cycles Flashcards
1
Q
Expansion (Recovery)
A
Phase of increasing employment, economic growth, and pressure for price increases
2
Q
Contraction (Recession)
A
Periods of economic contraction when production, output, and purchases decreases
3
Q
Peak
A
Maximum growth stage of economy
4
Q
Trough
A
Lowest point of economic activity
5
Q
Depression
A
Serious, sustained recession that lasts at least three years and results in a decrease in real GDP of 10% or more
