A Describe the Business Cycle and Its Phases

Question 1

Business Cycle

Answer 1

Fluctuations in economic activity; Real GDP and rate of unemp

Question 2

Phases

Answer 2

Expanstion; +GDP; +Emp, +C, +I
Peak; as Expansion approaches, +Emp, +C, +I slow but inflation accelerates
Contraction;recession;-real GDP, -inflation
Trough;recovery; inflation slows but unemp may not grow as quick

*business cycles refer mostly to business econs