Wednesday, January 21, 2015

Business cycle

Business Cycle



Expansionary- Real out put in the economy is increasing and the unemployment rate is declining
ex. building houses

Peak- where real GDP is at its heights point

Contraction (rescission) - real out in the economy is decreasing, and the unemployment rate is rising or increasing

Trough- lowest point of real GDP

EPCT 1 business cycle from Trough to Trough

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