Business cycles Flashcards
1
Q
What is a business cycle
A
Recurrent but not periodic pattern of expansion and contraction in the level of economic activity that occurs within a country
2
Q
What is the composition of a business cycle
A
Trough: recession and depression
Peak: recovery and boom
3
Q
What are the 2 features of business cycles
A
Economic expansion
Economic decline
4
Q
Discuss economic expansion in a business cycle
A
Period of growth where activities increase More production Employment increase Interest rate decrease Inflation increase Lead to economic boom
5
Q
Discuss economic decline in business cycles
A
Periods where activities decrease Less production Employment decrease Interest rates increase Inflation decrease Lead to economic depression
