|
|
Article: Business Cycle
- Article from:
- Gale Encyclopedia of U.S. Economic History
CopyrightCOPYRIGHT 1999 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 CYCLE
Business cycle
is the name given to the tendency of all economies to go through periods of economic weakness followed by periods of economic growth. When employment, income, trade, and the production of goods and services declines the economy is said to be in a "recession" or a "contraction." If this downturn is particularly harsh, this part of the business cycle is known as a "depression." Conversely, when employment, income, trade, and the production of goods and services grows over a sustained period of time, the economy is said to be enjoying an "expansion." Thus, the term
business cycle
describes the full process of economic growth and shrinkage
—
of "boom" ...