Business cycle

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The business cycle is the recurring expansion and contraction of economic activity around a longer-term growth trend. It is reflected in changes in output, employment, income, investment, production, sales, credit, and confidence.

An expansion is a period in which economic activity rises, often accompanied by stronger employment, spending, investment, and profits. A peak marks the transition from expansion to decline.

A recession is a broad contraction in activity, followed by a trough at which decline ends and recovery begins. The length and strength of each phase vary, and business cycles are not perfectly regular.

Proposed causes include changes in investment, credit, technology, productivity, inventories, expectations, policy, commodity prices, financial instability, and external shocks. Economists and statistical agencies use many indicators to identify and date the phases.

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• Source / publisher: Wikipedia
• URL type: WWW
• Credits: Wikipedia
• URL: https://en.wikipedia.org/wiki/Business_cycle