Business cycle

Definition

The business cycle refers to the fluctuations in economic activity that occur over time, including periods of expansion (economic growth) and contraction (recession).

Related terms

Expansion: A period of economic growth characterized by increased production, employment, and income.

Recession: A significant decline in economic activity lasting for at least six months, marked by reduced output, employment, and income.

Depression: An extreme recession with severe declines in economic activity lasting for several years.