Business Cycle- A fluctuation in economic activity that an economy experiences over a period of time
Four Phases of Business Cycle
1.Expansion Phase: period if economic upturn when output and employment are rising
2. Peak: highest point of real GDP; it's near or at full employment.
3. Contraction/Recession: where real GDP declines for at least six months
4. Trough: the lowest point of real GDP; it has the least amount of spending and the highest unemployment.
Four Phases of Business Cycle
1.Expansion Phase: period if economic upturn when output and employment are rising
2. Peak: highest point of real GDP; it's near or at full employment.
3. Contraction/Recession: where real GDP declines for at least six months
4. Trough: the lowest point of real GDP; it has the least amount of spending and the highest unemployment.
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