|
|
Article: Business Cycles
- Article from:
- Dictionary of American History
- Author:
CopyrightCOPYRIGHT 2003 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
BUSINESS CYCLES
BUSINESS CYCLES
are the irregular fluctuations in aggregate economic activity observed in all developed market economies. Aggregate economic activity is measured by real gross domestic product (GDP), the sum weighted by market prices, of all goods and services produced in an economy. Comparisons of real GDP across years are adjusted for changes in the average price level (inflation). A business cycle contraction or recession is commonly defined as at least two successive three-month periods (quarters) in which real GDP falls. A business cycle then contains some period in which real GDP grows followed by at least half a year in which real GDP falls. Some business cycles ...