Business cycle

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  • So, class today, we will be talking about business cycle. Do you know anything about it?
  • Expansion and recovery is the period of economic growth as measured by a rise in real GDP.
  • I know that a trough is the lowest point in an economic decline, where real GDP is falling.
  • Contraction is declined mark by a fall in real GDP, high unemployment, and deflation.
  • That is correct. Also, contrasting and recession is when the real GDP declines, the rate of unemployment rises.
  • The peak is when the real GDP stops rising.
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